Earnings Labs

Chesapeake Utilities Corporation (CPK)

Q3 2018 Earnings Call· Mon, Nov 12, 2018

$126.23

-0.97%

Key Takeaways · AI generated
AI summary not yet generated for this transcript. Generation in progress for older transcripts; check back soon, or browse the full transcript below.

Same-Day

+1.35%

1 Week

+2.28%

1 Month

+12.94%

vs S&P

+17.38%

Transcript

Operator

Operator

Good morning. My name is Chris, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Chesapeake Utilities Third Quarter 2018 Earnings Call. [Operator Instructions] Thank you. Beth Cooper, you may begin your conference.

Beth Cooper

Analyst

Good morning everyone. And thank you for joining Chesapeake Utilities third quarter 2018 earnings conference call. We appreciate all of you taking the time to join us this morning. We're hosting today's call live from our Silver Lake office in Dover, Delaware, and joining me on the call today is Mike McMasters, President and CEO; as well as other members of our Management Team. Before we begin, I would like and the team would like to extend our recognition and appreciation to all veterans who have served this great country of ours. We honor and salute all who have served in the military on this day being recognized as Veteran's Day. Now turning to Slide 2, before we begin, I would like to remind you that today's presentation may include forward-looking information. We would refer you to our Annual Report on Form 10-K that discusses those factors that may cause actual results to differ from forward-looking information. Turning to Slide 3, in terms of our year-to-date performance you'll see that our earnings year-to-date remain very strong, up over 21% compared to the nine months ended September 2017. The key drivers of our growth year-to-date include our regulated energy business being up $7.5 million in terms of net income again or approximately 29% year-to-date. The key drivers of this higher performance include our Eastern Shore rate case and our 2017, system expansion project, our Northwest pipeline project and several other Peninsula Pipeline expansion projects, a return to more normal weather, natural gas distribution growth, and finally our Florida GRIP and electric reliability program. On the unregulated energy side, we're also up on a net income basis when you look at it 8.7% year-to-date. This is being driven largely by continued propane customer growth, AutoGas, and also increased service revenues and wholesale…

Mike McMasters

Analyst

Thanks Beth. Yes turning Slide 14 I guess the first project we’re going to talk about is the Eastern Shore projects essentially we had the largest project in our history this year 23 miles of looping in Pennsylvania, Maryland and Delaware. 17 loss of new mainline extension and two pressure control stations at Sussex County. We've also upgraded the interconnect with PESCO with 3,750 new compression for compressor stations, two pressure control spaces as well. Total capacity increased to 61,162 dekatherms. Estimated capital investment $117 million we spend about $103 million to date. Capital spend in years for 2017 through 2019 the annual margin $13.8 million for the first five years and $13.2 thereafter. As I mentioned earlier it's the largest project in our history. We’ve introduced 24-inch pipeline into our system which is the first time and we hope to plan on complete the construction of remaining loops and place all segment into service by the first quarter of 2019. Turning to Slide 15, we’ve got Del-Mar Energy Pathway Project underway. We’ve made the filing with the FERC the pipeline is six miles of pipeline looping in Delaware, 13 miles of new mainline extension in Sussex County, Delaware and Somerset County. The pressure control stations, new delivery stations at Sussex County, Delaware and Somerset County, Maryland. Estimated capital investment of $37.1 million the capital spends expected to occur for 2018 to 2021. There is really two pieces to this project the first one in Sussex County for $2.8 million of margin and the second one is Somerset County for $2.3 million. Note that the next steps that we filed with the FERC on September 14 to get our certificate application but we continue to develop the project’s facilities and successfully obtained all required permitting. The FERC process is ongoing…

Operator

Operator

[Operator Instructions] At this time there are no questions in queue. I’ll turn the call back over to the presenters.

Mike McMasters

Analyst

Thank you very much. Well thank you everyone for your continued support of our company. We are continuing our effort to identify opportunities and to drive our growth and increase our shareholder returns. Thank you very much for your attention. Good night - good day.

Operator

Operator

This concludes today's conference call. You may now disconnect.