CHESAPEAKE UTILITIES CORPORATION REPORTS SECOND QUARTER 2026 RESULTS

Three Months Ended

Six Months Ended

June 30,

June 30,

(dollars in millions, shares in thousands (except per share data))

2026

2025

2026

2025

Net Income (GAAP)

$         25.4

$         23.9

$         84.7

$         74.8

FCG transaction and transition-related expenses, net ⁽¹⁾

—

0.4

—

0.6

Adjusted Net Income (Non-GAAP)

$         25.4

$         24.3

$         84.7

$         75.4

Weighted average common shares outstanding - diluted

24,174

23,402

24,115

23,223

Earnings Per Share - Diluted (GAAP)

$         1.05

$         1.02

$         3.51

$         3.22

FCG transaction and transition-related expenses, net ⁽¹⁾

—

0.02

—

0.03

Adjusted Earnings Per Share - Diluted (Non-GAAP)

$         1.05

$         1.04

$         3.51

$         3.25

⁽¹⁾ Transaction and transition-related expenses represent non-recurring costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transition services, consulting, system integration, rebranding, and legal fees.

(in millions, except per share data)

Pre-tax

Income

Net

Income

Earnings

Per Share

Three Months Ended June 30, 2025 Adjusted Results ⁽¹⁾

$      33.3

$       24.3

$       1.04

Change in Adjusted Gross Margins:

Natural gas transmission service expansions, including interim services ⁽²⁾

4.9

3.6

0.15

Contributions from regulated infrastructure programs ⁽²⁾

3.2

2.4

0.10

Natural gas growth including conversions (excluding service expansions)

2.0

1.4

0.06

Increased propane margins and service fees

1.5

1.1

0.05

Increased Aspire Energy performance - rate changes and gathering fees

0.4

0.3

0.01

Change in off-system natural gas capacity sales

0.3

0.2

—

Decreased CNG/RNG/LNG services

(1.0)

(1.0)

(0.04)

Absence of recovered costs associated with Hurricane Michael ⁽³⁾

(1.9)

(1.4)

(0.06)

Changes in customer consumption

(2.7)

(2.0)

(0.08)

6.7

4.6

0.19

Change in Operating Expenses (Excluding Natural Gas, Propane, and
Electric Costs):

Depreciation, amortization and property taxes

(3.5)

(2.6)

(0.11)

Credit, collections and customer service costs

(1.3)

(0.9)

(0.04)

Payroll, benefits and other employee-related expenses

(1.2)

(0.8)

(0.03)

Facilities expenses, maintenance costs and outside services

(0.6)

(0.5)

(0.02)

Vehicle expenses

(0.5)

(0.3)

(0.02)

Insurance-related costs

(0.4)

(0.2)

(0.01)

Absence of amortization of costs associated with Hurricane Michael recovery ⁽³⁾

1.9

1.3

0.06

(5.6)

(4.0)

(0.17)

Interest charges

(0.6)

(0.4)

(0.02)

Increase in shares outstanding due to 2025 and 2026 equity offerings ⁽⁴⁾

—

—

(0.03)

Net other changes

1.2

0.9

0.04

0.6

0.5

(0.01)

Three Months Ended June 30, 2026 Adjusted Results ⁽¹⁾

$      35.0

$       25.4

$       1.05

⁽¹⁾  Transaction and transition-related expenses attributable to the acquisition and integration of FCG have been excluded from the Company's non-GAAP measures of adjusted net income and adjusted EPS. See reconciliations above for a detailed comparison to the related GAAP measures.

⁽²⁾  Refer to the Major Projects and Initiatives table below for additional information.

⁽³⁾  The current period includes offsetting reductions in both adjusted gross margin and depreciation and amortization expense related to the absence of recovered costs associated with Hurricane Michael.

⁽⁴⁾  Reflects the impact of approximately 0.6 million common shares issued under the dividend reinvestment and direct stock purchase plan ("DRIP/DSPP") and at the market ("ATM") program.

(in millions, except per share data)

Pre-tax

Income

Net

Income

Earnings

Per Share

Six months ended June 30, 2025 Adjusted Results ⁽¹⁾

$     103.0

$       75.4

$       3.25

Change in Adjusted Gross Margins:

Natural gas transmission service expansions, including interim services ⁽²⁾

11.8

8.7

0.36

Contributions from regulated infrastructure programs ⁽²⁾

8.7

6.4

0.27

Natural gas growth including conversions (excluding service expansions)

4.0

2.9

0.12

Rate changes associated with recent rate case activities ⁽²⁾

4.1

3.0

0.13

Increased propane margins and service fees

1.8

1.3

0.05

Increased Aspire Energy performance - rate changes and gathering fees

1.8

1.3

0.05

Changes in customer consumption

1.8

1.3

0.06

Change in off-system natural gas capacity sales

1.4

1.0

0.04

Decreased CNG/RNG/LNG services

(1.2)

(0.9)

(0.04)

Absence of recovered costs associated with Hurricane Michael ⁽³⁾

(3.9)

(2.8)

(0.12)

30.3

22.2

0.92

Change in Operating Expenses (Excluding Natural Gas, Propane, and
Electric Costs):

Payroll, benefits and other employee-related expenses

(7.8)

(5.7)

(0.24)

Depreciation, amortization and property taxes

(5.0)

(3.7)

(0.15)

Facilities expenses, maintenance costs and outside services

(3.7)

(2.7)

(0.11)

Credit, collections and customer service costs

(2.7)

(2.0)

(0.08)

Insurance-related costs

(0.6)

(0.4)

(0.02)

Vehicle expenses

(0.6)

(0.4)

(0.02)

Absence of amortization of costs associated with Hurricane Michael recovery ⁽³⁾

3.9

2.8

0.12

(16.5)

(12.1)

(0.50)

Interest charges

(1.2)

(0.8)

(0.04)

Increase in shares outstanding due to 2025 and 2026 equity offerings ⁽⁴⁾

—

—

(0.12)

Net other changes

0.1

—

—

(1.1)

(0.8)

(0.16)

Six months ended June 30, 2026 Adjusted Results ⁽¹⁾

$     115.7

$       84.7

$       3.51

⁽¹⁾ Transaction and transition-related expenses attributable to the acquisition and integration of FCG have been excluded from Company's non-GAAP measures of adjusted net income and adjusted EPS. See reconciliations above for a detailed comparison to the related GAAP measures.

⁽²⁾  Refer to the Major Projects and Initiatives table below for additional information.

⁽³⁾ The current period includes offsetting reductions in both adjusted gross margin and depreciation and amortization expense related to the absence of recovered costs associated with Hurricane Michael.

⁽⁴⁾  Reflects the impact of approximately 0.6 million common shares issued under the Company's DRIP/DSPP and ATM program.

Adjusted Gross Margin

Three Months Ended

Six Months Ended

Year Ended

Estimate for

June 30,

June 30,

December 31,

Fiscal

(in millions)

2026

2025

2026

2025

2025

2026

2027

Pipeline Expansions:

St. Cloud / Twin Lakes
Expansion

$     1.0

$     0.8

$      2.0

$      0.9

$          2.9

$      3.8

$      3.8

Wildlight

1.1

0.5

2.2

1.0

2.6

4.3

4.3

Worcester Resiliency Upgrade

0.4

—

0.8

—

0.3

1.5

17.1

Boynton Beach

0.9

0.9

1.8

1.4

3.0

3.4

3.4

New Smyrna Beach

0.6

0.3

1.2

0.3

1.6

2.6

2.6

Central Florida Reinforcement

1.1

0.3

2.2

0.6

2.6

4.3

4.3

Renewable Natural Gas
Supply Projects

1.2

0.5

2.5

0.5

2.5

5.4

6.4

Miami Inner Loop

1.9

—

3.8

—

2.8

7.6

7.6

Duncan Plains

—

—

—

—

—

—

1.1

Total Pipeline Expansions

8.2

3.3

16.5

4.7

18.3

32.9

50.6

Regulatory Initiatives:

Florida GUARD program

2.6

1.7

5.0

3.2

7.1

10.9

13.0

FCG SAFE Program

2.9

2.2

5.7

3.9

8.4

12.7

16.4

Capital Cost Surcharge
Programs

2.3

1.4

4.6

2.9

5.7

9.0

10.1

Electric Storm Protection Plan

1.8

1.5

5.1

2.6

6.4

9.7

10.4

Florida Mandatory Relocates

0.4

—

0.9

—

—

1.5

1.5

Infrastructure Subtotal

10.0

6.8

21.3

12.6

27.6

43.8

51.4

Rate Case

Maryland Rate Case ⁽¹⁾

0.7

0.6

2.0

0.6

1.5

3.5

3.5

Delaware Rate Case ⁽¹⁾

1.3

1.4

3.4

2.2

4.7

6.1

6.1

Electric Rate Case ⁽¹⁾

2.1

2.1

4.3

2.8

7.3

8.6

9.1

FCG Rate Case

—

—

—

—

—

TBD

TBD

     Rate Case Subtotal

4.1

4.1

9.7

5.6

13.5

18.2

18.7

Total Regulatory Initiatives

14.1

10.9

31.0

18.2

41.1

62.0

70.1

Total

$    22.3

$    14.2

$     47.5

$     22.9

$         59.4

$     94.9

$   120.7

⁽¹⁾ Includes adjusted gross margin attributable to interim and permanent rates.

Chesapeake Utilities Corporation and Subsidiaries

Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2025

(in millions, except shares (thousands) and per share data)

Operating Revenues

   Regulated Energy

$      164.3

$     151.8

$     413.6

$     351.4

Unregulated Energy

45.2

47.9

158.9

154.6

Other Businesses and Eliminations

(7.6)

(6.9)

(17.5)

(14.5)

Total Operating Revenues

201.9

192.8

555.0

491.5

Operating Expenses

  Regulated natural gas and electricity costs

39.6

34.1

141.2

105.6

  Unregulated propane and natural gas costs

12.1

15.9

57.4

60.7

  Operations

57.7

54.9

125.0

112.9

  Maintenance

7.0

6.0

15.0

11.4

  Depreciation and amortization

22.9

21.9

44.4

44.4

  Other taxes

9.7

9.2

19.7

18.6

  FCG transaction and transition-related expenses

—

0.5

—

0.8

Total Operating Expenses

149.0

142.5

402.7

354.4

Operating Income

52.9

50.3

152.3

137.1

Other income, net

0.5

0.4

0.5

1.0

Interest charges

18.4

17.8

37.1

35.9

Income Before Income Taxes

35.0

32.9

115.7

102.2

Income taxes

9.6

9.0

31.0

27.4

Net Income

$       25.4

$       23.9

$       84.7

$       74.8

Weighted Average Common Shares Outstanding:

Basic

24,056

23,307

23,997

23,133

Diluted

24,174

23,402

24,115

23,223

Earnings Per Share of Common Stock:

Basic

$       1.06

$       1.03

$       3.53

$       3.23

Diluted

$       1.05

$       1.02

$       3.51

$       3.22

Adjusted Net Income and Adjusted Earnings Per Share

Net Income (GAAP)

$       25.4

$       23.9

$       84.7

$       74.8

FCG transaction and transition-related expenses, net ⁽¹⁾

—

0.4

—

0.6

Adjusted Net Income (Non-GAAP)**

$       25.4

$       24.3

$       84.7

$       75.4

Earnings Per Share - Diluted (GAAP)

$       1.05

$       1.02

$       3.51

$       3.22

FCG transaction and transition-related expenses, net ⁽¹⁾

—

0.02

—

0.03

Adjusted Earnings Per Share - Diluted (Non-GAAP)**

$       1.05

$       1.04

$       3.51

$       3.25

⁽¹⁾ Transaction and transition-related expenses represent costs incurred attributable to the acquisition and integration of FCG including, but not limited to, transition services, consulting, system integration, rebranding and legal fees.

Chesapeake Utilities Corporation and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

Assets

June 30,
2026

December 31,
2025

(in millions, except shares and per share data)

Property, Plant and Equipment

Regulated Energy

$         3,076.1

$         2,941.6

Unregulated Energy

514.3

492.4

Other Businesses and Eliminations

43.0

38.3

Total property, plant and equipment

3,633.4

3,472.3

Less: Accumulated depreciation and amortization

(657.5)

(637.6)

Plus: Construction work in progress

376.6

283.7

Net property, plant and equipment

3,352.5

3,118.4

Current Assets

Cash and cash equivalents

0.4

1.8

Trade and other receivables

100.2

106.9

Less: Allowance for credit losses

(7.9)

(5.4)

Trade and other receivables, net

92.3

101.5

Accrued revenue

30.5

50.1

Propane inventory, at average cost

6.6

8.8

Other inventory, at average cost

17.1

17.9

Regulatory assets

19.6

29.7

Storage gas prepayments

2.9

4.5

Prepaid expenses

15.5

19.7

Derivative assets, at fair value

0.2

—

Other current assets

2.9

3.0

Total current assets

188.0

237.0

Deferred Charges and Other Assets

Goodwill

507.5

507.5

Other intangible assets, net

12.5

13.2

Investments, at fair value

18.7

17.2

Derivative assets, at fair value

0.1

—

Operating lease right-of-use assets

8.9

9.9

Regulatory assets

72.9

74.3

Receivables and other deferred charges

12.7

17.3

Total deferred charges and other assets

633.3

639.4

Total Assets

$         4,173.8

$         3,994.8

Chesapeake Utilities Corporation and Subsidiaries

 Condensed Consolidated Balance Sheets (Unaudited)

Capitalization and Liabilities

June 30,
2026

December 31,
2025

(in millions, except shares and per share data)

Capitalization

Stockholders' equity

Preferred stock, par value $0.01 per share (authorized 2,000,000 shares),
no shares issued and outstanding

$              —

$               —

Common stock, par value $0.4867 per share (authorized 75,000,000
shares)

11.7

11.6

Additional paid-in capital

986.7

962.8

Retained earnings

676.7

626.8

Accumulated other comprehensive loss

(1.7)

(2.7)

Deferred compensation obligation

17.5

12.6

Treasury stock

(17.5)

(12.6)

Total stockholders' equity

1,673.4

1,598.5

Long-term debt, net of current maturities

1,317.9

1,327.1

Total capitalization

2,991.3

2,925.6

Current Liabilities

Current portion of long-term debt

131.7

134.6

Short-term borrowing

238.1

158.0

Accounts payable

93.6

115.2

Customer deposits and refunds

50.2

45.1

Accrued interest

8.8

8.7

Dividends payable

17.7

16.4

Accrued compensation

13.0

21.6

Regulatory liabilities

16.3

14.5

Derivative liabilities, at fair value

0.3

0.8

Other accrued liabilities

25.0

15.0

Total current liabilities

594.7

529.9

Deferred Credits and Other Liabilities

Deferred income taxes

346.6

313.3

Regulatory liabilities

203.3

188.1

Environmental liabilities

3.2

2.9

Other pension and benefit costs

15.2

14.0

Derivative liabilities, at fair value

0.1

0.6

Operating lease - liabilities

7.0

7.9

Deferred investment tax credits and other liabilities

12.4

12.5

Total deferred credits and other liabilities

587.8

539.3

Environmental and other commitments and contingencies ⁽¹⁾

Total Capitalization and Liabilities

$         4,173.8

$         3,994.8

⁽¹⁾ Refer to Note 6 and 7 in the Company's Quarterly Report on Form 10-Q for further information.

Three Months Ended June 30, 2026

(in millions)

Regulated Energy

Unregulated
Energy

Other Businesses
and Eliminations

Total

Operating Revenues

$               164.3

$                 45.2

$                 (7.6)

$               201.9

Cost of Sales:

Natural gas, propane and
electric costs

(39.6)

(19.8)

7.7

(51.7)

Depreciation & amortization

(17.3)

(5.6)

—

(22.9)

Operations & maintenance
expenses ⁽¹⁾

(15.5)

(10.4)

—

(25.9)

Gross Margin (GAAP)

91.9

9.4

0.1

101.4

Operations & maintenance
expenses ⁽¹⁾

15.5

10.4

—

25.9

Depreciation & amortization

17.3

5.6

—

22.9

Adjusted Gross Margin (Non-
GAAP)

$               124.7

$                 25.4

$                  0.1

$               150.2

Three Months Ended June 30, 2025

(in millions)

Regulated Energy

Unregulated
Energy

Other Businesses
and Eliminations

Total

Operating Revenues

$               151.8

$                 47.9

$                 (6.9)

$               192.8

Cost of Sales:

Natural gas, propane and
electric costs

(34.1)

(22.9)

7.0

(50.0)

Depreciation & amortization

(16.8)

(5.1)

—

(21.9)

Operations & maintenance
expenses ⁽¹⁾

(14.6)

(9.8)

0.4

(24.0)

Gross Margin (GAAP)

86.3

10.1

0.5

96.9

Operations & maintenance
expenses ⁽¹⁾

14.6

9.8

(0.4)

24.0

Depreciation & amortization

16.8

5.1

—

21.9

Adjusted Gross Margin (Non-
GAAP)

$               117.7

$                 25.0

$                  0.1

$               142.8

For the Six Months Ended June 30, 2026

(in millions)

Regulated Energy

Unregulated
Energy

Other Businesses
and Eliminations

Total

Operating Revenues

$               413.6

$               158.9

$                (17.5)

$               555.0

Cost of Sales:

Natural gas, propane and
electric costs

(141.2)

(74.9)

17.5

(198.6)

Depreciation & amortization

(33.4)

(11.0)

—

(44.4)

Operations & maintenance
expenses ⁽¹⁾

(32.2)

(21.3)

0.1

(53.4)

Gross Margin (GAAP)

206.8

51.7

0.1

258.6

Operations & maintenance
expenses ⁽¹⁾

32.2

21.3

(0.1)

53.4

Depreciation & amortization

33.4

11.0

—

44.4

Adjusted Gross Margin (Non-
GAAP)

$               272.4

$                 84.0

$                   —

$               356.4

For the Six Months Ended June 30, 2025

(in millions)

Regulated Energy

Unregulated
Energy

Other Businesses
and Eliminations

Total

Operating Revenues

$               351.4

$               154.6

$                (14.5)

$               491.5

Cost of Sales:

Natural gas, propane and
electric costs

(105.6)

(75.1)

14.4

(166.3)

Depreciation & amortization

(34.4)

(10.0)

—

(44.4)

Operations & maintenance
expenses ⁽¹⁾

(27.9)

(19.5)

0.7

(46.7)

Gross Margin (GAAP)

183.5

50.0

0.6

234.1

Operations & maintenance
expenses ⁽¹⁾

27.9

19.5

(0.7)

46.7

Depreciation & amortization

34.4

10.0

—

44.4

Adjusted Gross Margin (Non-
GAAP)

$               245.8

$                 79.5

$                 (0.1)

$               325.2

⁽¹⁾ Operations & maintenance expenses within the condensed consolidated statements of income are presented in accordance with regulatory requirements and to provide comparability within the industry. Operations & maintenance expenses which are deemed to be directly attributable to revenue producing activities have been separately presented above in order to calculate Gross Margin as defined under GAAP.