Chesapeake Utilities (CPK) 8 Nov 192019 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Chesapeake Utilities Corporation Third Quarter Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Ms. Beth Cooper. Thank you. ma'am. ahead, go Please

welcome call. Chesapeake and XXXX Third Earnings Conference to morning, Utilities the Quarter Good

begin the done have place every entire is day. the of we phone active, in have no organization, Before today, room made. today. retired on recognize country like the our value and for all On thanks to behalf reserve on members and our of serve Chesapeake forces can Chesapeake armed the the There you team sacrifices proudly you we everything to each would and

appreciate Now in turning back all to of taking our listen call. to We time you today.

me Vice Joining and Executive President, President General Householder, Counsel Risk are the Officer. on and Jeff Compliance Moriarty, CEO; and Jim Chief phone and

members room in Complex of in is team call The other with today. Delaware. place management in Energy the taking the have our us Dover, Lane We

will September the performance year. results Much quarter Our the of quarterly and the are in in presentation year-to-date generally quarters in focus four on of focus our third results today earnings, XX, XXXX. on the weather be which through smallest a will our the as year-to-date

have business announced, on transactions contracts the we to quarter, As natural our closed the natural series PESCO, to with To a initiated process we gas four subsidiary. a in previously sell date, third the and marketing through of exit assets marketing gas transactions.

Tesco separate details as result, additional and to operation, transactions. XX-Q our release report a operations. begun these refer discontinued Form to on I you press As our we have continuing from would for

before of highlight the performance, our to us. Lastly, in addition also will many opportunities see we we

Turning to Slide X.

certain both terms -- include to performance. overall addition refer gross including turn will Jeff. EPS XX-K result over for the presentation. discontinued to Form as in actual in and included are consolidated concerning in could and adjusted forward-looking operations in disclaimers well information, discussion XXXX differing the our a non-GAAP as I annual you company's of listed margin as Form Again, continuing future measures, to third statements of forward-looking list call the that on results. and the performance XX-Q Our factors the performance now quarter report related we our from will also Today's to operations, such our highlight normal

for and third Beth, Thanks, thanks joining call. our quarter

the always prepare Beth winter is to a revenue hurdles. maintenance a projects to to system accelerate somewhat however, number gas of a And low-cost time in propane As the quarter the third business. for It complete variety indicated, less of and natural construction is, quarter great a and time take that, projects projects. We've advantage year. We've down the number Florida. the role on of in making completed of years. this typically progress all pipeline We've several of important significant mild a in of been installed number doing services replacement pipeline at a of

new in been we've our to All expanding gas handling marketing our and Marlin business. customers, of sale addition So to Gas the business. services that,

today, and see We're happy all here as cold as we'll well winter. report on and hopefully, weather DelMar up have begun Ohio. it's I'm week to also finally the be to next some for cold over show for

earnings, So we continue performance ahead and fully strong year-to-date we're expect through XXXX reflects of in that well to year-end. XXXX

execution want initiatives, our I highlight X. few results plan. our operations Slide points financial a to turn of related our Let's the to to quickly strategic just and

we in side improvement and the continuous of activity our business, compliance a areas. operations have safety the operational On underway

some average, customer best-in-class operating the investing expect and continue the have for above We and want to to growth our real Delmarva commitment national we're time. and operational our and we quite well We've that in significantly We seen areas, safety that. on distribution Florida, a in be compliance. to both were gas

activities are several activities replacement replacement Our investments to up, cross-business customer years operations, especially more is we our last they activity, transmission gas of significant -- continue and unit over diligently the working calling all we've and and months to identify in several in see opportunities. been distribution drive and operations. been pipeline We've fairly pipeline existing our demand Florida collaboration

We will a expect and going leading identify expense are of efficiencies, operational additional synergies forward. then that to lowered operating in and our continue XXXX to that has number we some overall that

$X growth, million On and $XX so in the far. the significant gross quarter about year-to-date, business, and side of both quarter about million increase margin financial year-to-date the this for a

a growth EPS our increased about X.X% that GAAP We about May, very businesses growth by Margins and X.X% is significant of and Florida-regulated nonregulated income have bottom of EPS our tax natural dividend of in Some TCJA for a our the gas our and we operating months. hitting and the over line growth X-year seen business. driving X.X%. have that XXXX. benefit first dividend we represents figure $X.XX, in X are

things, our other and among allowed to peer which that some And capital, to benefit year certainly competitively relative permanent performance this strong strong us into the continued future. access seeing group. we're has priced very will well us So performance,

execute On fundamental strategic on the side, we our strategy. continue to

new opportunity the for our to Ohl the news Beach on of found The the a significant acquisitions few investment contribute Marlin pipeline in opportunities Auburndale DelMar continuing talk rate we are also see projects, the have the areas. to out pipeline hope good we'll our and very Michael project, several We that on news Hurricane over have we over to distribution so. some we Shore County about continuing year executed propane Florida, the FERC -- Palm in Eastern next waiting to approve service or or list those in and the which detail we're and and Ohio Florida, on then in good PPC expansions here We're moments. the in cost And significantly, past pathway recovery. pipeline have have decade in of Callahan in recovery

charging set the recovery, into amount, to to agreement approved will executed dollar interim of Counsel the settlement a revenues begin Commission the pay service system for to Office of that Hurricane rates the Michael but the the with Public and that recovery that back seeing structure cost. we allow flow electric not structure the of The essentially us Public

several few undertaken January. gas renewable to We quality into establish filing a bring, natural our or Shore months, the for over hopefully, amount We've I course, next also X rates system over It's standards and begin for our settled a will, of but pipeline over system. FERC X news that dollar we Eastern in have on our structure amount final place a significant probably in recent will that great to next intent believe, the those years. interim recovery, it's hurricane the the

some several of pipeline. chicken fairly including polluting on projects are waste clean to Bay, to methane one, There the try injection is but to both significant offers our one the Delmarva, also an for substantial that opportunity up

and projects so molecules Number pursue finalization. that see those to close very the to pipeline hope couple that our of begin of And come years. into we over to new RNG next here

gas can close project indicated, are it. forward of with we second to particularly our Some CHP a recently where We've Beth project, we getting interest that natural Island, obviously, move marketing business. And we not that CHP them secret. project, contract we've in exited are to Amelia as been hope about a point the and the it talking

couple me Turning of comments let to just a about make Slide that. X,

process, ultimately a strategic energy we look business. X of that exit fundamental As planning part ongoing took business. at our our decision-making hard There services to financial were our issues drove that

required thought long-term needed growth we significant business and with the investments to our of ensure as think additional also effort tolerance. risk the It very that business continue that putting was our have foremost, would profitable, strategy. some running of significantly I be didn't wasn't aligned exceeded just human in resources was and that First that business. the kind system were volatile and making both to into terms I It resources. we frankly, the contribution It that for

we decided exit the business. So to

concluded of improves We future and we've the period. this interest sale. earnings. outlook It parties earnings Exiting reduces in business, identified a number the volatility the of substantially with our business

that We've sale to separate up the have on that -- price of see business assets for assets And on entities. X fully X. happy section, on actually to the that contracts of received sales are ended the under We this you recovers selling business investment. customer the report we the our Page

a assignments those we Beth ultimately PESCO approximately million. By of now gain we $XX million receive will $X operation. the And total we're as amounts sales how indicated, $X estimate as a the a dollar pretax year-end, ranging discontinued million, depending for to we that go and achieve believe accounting, We somewhere between contracts. on contract

detail always, and back let to over So will, provide turn our Beth this will on results. color some as and me she

that with pleased sale very recognize Jeff. PESCO. executed as will we of Jeff with the And are we mentioned, which Thanks, speed the in gain we fourth quarter. the And ultimately the

Slide the for on quarter see gross year-to-date, income can X you and strong growth driven margin has growth. operating As our

and pace and a income on Gross growth XX.X% periods, While year-to-date the grew expenses basis. operating our of grew, X.X% the growth the respectively. and slowed for for the and to quarter XX.X% importantly, X.X% operating quarter same of third X.X% more other for margin year-to-date, the X.X% driving

for mentioned from used initiatives increased the per this share the quarter, interest the and $X.XX are initiatives by GAAP of other cost as and on short-term beginning share continuing margin consolidated increased On projects color-coded or we've a EPS initiatives. growth EPS quarter expansions, in associated projects gross contribution. continuing and the or to or acquisitions costs debt consolidated by year-to-date was by and third $X.XX GAAP costs for Higher or well from short-term were with this margin recently X borrowings quarter. We by same the operations EPS strategic flat interest slide for EPS grew as completed earlier. growth regulatory and offset periods. X.X%, with basis, period XX.X%. that And -- X.X%. actually increased $X.XX for the per highlight slide as grew sorted long-term and operations these underway both by

X-month from expect we million our the $X.X and TCJA largest initiatives, The to include expansion, from during million estimate from acquisition, million and million operations of includes million, X were since to regulatory impact $XX.X XXXX, gas natural pipeline the million largely $X.X $XX.X $X the million growth increased margin The second the For million Florida $XX.X increase that $X.X disclosures increase Marlin retain. million quarter. Marlin which previous in from Ohl generated of generating $XX.X distribution $X million the our $XX.X year-to-date able the period. contributors with

For gross projects in margin are service anticipate or partially million next put year. incremental as in XXXX, $X.X we completed

projects filed, to which in table, growth have proceeding we this and We add beyond. initiatives and including to trajectory will expect that new margin to electric limited add the the XXXX

include which new projects The have our under them not forecast does you in-service in on depending As table projects development. table margin can now next we margin year-to-date, year include margin beyond, the approximately natural to is recent the for for service, Auburndale see, of the and been and generate date. incremental approved, Once which addition and this $XXX,XXX XXXX gas will most actual of is which annual expansion, quarter and of $XXX,XXX. added the in

known introduced release, our Project. also new expansion Ohio, in discuss Guernsey as the will we Jeff In pipeline again. a project further the presentation press project this in

major release, XXXX We when introduced impact. margin in this the the to quarter the projects will add press table and fourth project initiative's we

primary We areas opportunities where natural there currently growing X gas to and are to operate bring communities. in regions

under focus and shown growth on XX% increased growth, year-to-date X% on This We of and generate X, modernizing year-to-date Slide of has continue Florida basis, on just growth. million a in representing as margin Chesapeake's resulted with Sandpiper both consolidated Florida. our distribution approximating organic converting systems our in Delmarva margin $X.X to coupled customer and above-average

by million contribution gross $X $X.X or year-to-date all Moving X. Aspire drivers margin segment impact were of those and These our alone, the a growth. added Marlin's Marlin, growth of gross in unregulated XX% key the On basis, drivers million margin incremental margin propane to drivers the with not gross these are year-to-date of had several the energy margin segment. drivers, But margin. Slide Chesapeake's representing and led and operations

the to Jeff to now back turn call bit regulatory going more on touch our I'm to a over recent little initiatives.

Beth. Thanks,

in successes. several to component successful As plan. you significant been We've and additional the overall years, quite all know, a happy strategic our regulatory initiatives report are over our

incremental and tax annual ago, a In portion second nonregulated XXXX. that benefit Public Commission the million talked an our as company's tax retention gas Florida We the TCJA with $X.X addition natural on regulated of Service reserves the approved million operations. a to pickup benefit beginning of a tax of about $X.X for reversal we've ended of XXXX savings up Florida in

$X.X And first about months so XXXX. far, of seen we've in the million X

believe, successful, only, as safety reasons country these these using dollars the portion one the a has probably of actually and regulated these if tax only on to of gas of attention we not compliance focused of activities. amount utility the dollars some natural operational of were in retain our -- the I benefits we our significant in One

our so the pop not are in that systems both a only public seen in of the we've in we've system. operations And nice recovered Florida. critical costs equity Florida utilities and central to gas But the foreign returns

$X.X one We as not March received it from down to million of also the in recovered, electric XXXX. Hurricane about indicates That April is there our recovery XXXX storm surcharge be system. of Michael, big for here to

nearly came few that island the natural These were distribution on through and our four Matthew system back. a gas years hurricanes, Irma

for yet came of of Hurricane other day PSC the not recovery with recent the expect $X so mentioning. filings on couple million There are are for or when it worth have filed preparing the we Dorian, We a that through. that

One of I Hurricane the mentioned that seeding the Recovery, them moment in a Michael passing ago. is

the indicated, we recovery that approved, recovery the next of interim get will final we I and as approval on months. rates few our structure believe final over have, already the the and here amount We

Shore believe indicated total forward. renewable I ultimately Shore. which has our element have Eastern supply Eastern important of a we that pretty filing accommodate gas also, to And is natural Beth? filed going we a gas,

Jeff. Thanks, Sure.

Slide to turning So XX.

ops earnings identified terms was of to recorded XX, As we that of gross margin in it XX, with per share earlier, earnings. in continuing per from and GAAP that on recorded mentioned we've result ended $X.XX the we September for $X.XX per share months X Slide XXXX, we conjunction and growth, share added our which a

funding in growth, at share. increased On Michael per saw slower increases but $X.XX expenses expected per as growth fully a Hurricane our a the much related restoration cost to costs pace support we to share, side, and $X.XX

our basis results to last on temperatures compared have than year-to-date been a normal Finally, XXXX year-to-date despite strong in year. warmer

and XX, result, by X.X% past share share our adjusted Earnings lower a X.X% based This As per the is actually consumption. upon earnings X was XX for shown and impacted per EPS. to negatively years growth December $X.XX respectively, potential averaged due ended earlier, Tesco's viewed and as a gains very on the on year-to-date outlook, positive Slide XX. results with the XXXX basis are as Jeff a commented included consolidated for strong on a year operations a basis, or whether basis. on remains whole, continuing

XXXX. earnings Beyond remains guidance XXXX, growth consistent our through with outlook for previous the

we of year new update as As to end to we continued finalized. move into are projects the XXXX, this guidance and further the will

growth increased ingenuity focus regulatory Our and continue on our efficiency and developing cost territories, in expansion team's new drive organic to projects combined with earnings. finding will relentless

pure XX, and ended stands with our company, achieved in performance combined quadrant, of that gas out Chesapeake to XX.X% returns we to investments slide Slide is show investments. given presentation. sustain consistently our X the high amongst and the shows total on capitalization electric and wide have prior performance gas return. we and at made periods, of to at This range years XX high XX.X% top have for which a XXXX, in we those the Similar continues June the ROE quadrant right-hand the us investment, CapEx capital

we performance, median percentile we but X each metrics and in recent the performance that to the company on traditional peer the for a We compared in box that key financial of year gas the also not the put above period right. our Chesapeake's is most only show XXth peers, monitor

mentioned, X.X% X total growth and and dividend the over XX%. CapEx shareholder approximating years that our I of XX.X%, again, EPS see, growth return our of just ROE You'll

is for projects associated gas updated our million $XXX and for distribution reflects Slide Regulated to electric and million, approximately $XXX which XX CapEx our forecast XXXX, including with approximately transmission and distribution, XX% segment project. natural Energy

of upon pursuing. our projects approval are largely several aggressively actual as we the the of depend new of are projects amount timing finalization as that we As approaching of will capital expenditures well for several year-end,

earnings the XXXX guidance that to with X.XX% expenditures billion $XXX And established At share that X-year we from capital between aligns we we estimated would a expenditure to guidance capital XXXX. This $X million to our end of historical XXXX, supported expend X-year per our forecast investment capital of X.X%. in levels.

spending recently actual plan X-year range updated before current capital growth meet XXXX we initiatives, capital for opportunities forecasted Notwithstanding expenditures, our targets. and strategic on for XXXX, Given to given track we range the of this, see us. and earnings are spending our this we

Our strategic years. to share return has five per growth the to led over equity earnings approach past on disciplined above average and investments

We and annual earnings our guidance current earnings providing and continue X-year forward, going the could than updated capital later exceed be release. expect that no to that trend we'll guidance XXXX

identify as involves engagement the for collaboratively growth that. no is the to the Our attention serve, opportunities strategic and XX. of planning mistake a paid our a communities environmental we years strategic working map Slide September The company. businesses fiscal about stewardship, across capital Make process But and X priority. serves employee efficiency. future our plan last to the future. Growth safety, for shows as road XX structure cost with equal

total As represented you see, XX%. capitalization our to approximately can equity

which XX% to equity end capital total financing represented our Excluding plans, not at in capitalization of Hurricane Michael, initial the September. was

and the spending timing structure We conjunction continue growth of plans and equity for in to date in-service monitor capital for our financing and our capital debt with projects.

also associated due XXXX. several with the debt X.XX% institutions priced terms year. notes million early which term of senior with of commercial mature migration $XX issuance senior to in we other time, December to of and December our project, One XXXX, represent to notes regards Hurricane of is to are that considering notes this associated expected lowest this plan Recently, market the of uncollateralized step These migrate $XX relates and considerations. of our regulatory company. history we closer part short-term We in our in borrowings. in $XX recent over conditions, only and in debt structure to These key reached million million financial undertook the demonstrate financial plan, continue target $XX but with financing intermediate term intermediate of million expect and of the to the strength notes refinance, overall not initiatives Michael, also

back capital to Now going of our to over discuss the turn call projects. to I'm several Jeff larger

Thanks.

capital in successful on quite been projects putting work. we've indicated, Beth capital to identifying and executing As dollars and

forward. Page XX to that of XX The Slide continue or Shore on that you our We Florida see of snapshot on just projects, our see some list Eastern in going operating areas. is a both transmission

You've last couple margins expansion shore the significant Eastern XXXX heard result. the fully of us speak is service. years that project in of seeing for about We're

over expansion Western went in year, margins XXXX. the our to Our continue This additional opportunities Florida that the seeing project we're to annualized customers of off on Panhandle pipe expand Northwest Florida Palm that actually of in County. into middle Beach looking that serve to of and fully service and

Again, part on waiting DelMar that to we Avondale in Construction, Callahan hope the we believe have construction western project so authorization and will other are providing of projects, Energy under the into we in Power as and Pathway, to the in a fairly in XXXX. service we'll that county. of we soon pipeline service Guernsey FERC which that by completed the County Florida there QX construction and and pipelines many couple are into XXXX. be see it of able get that believe station, a pipeline other And projects National -- on put some begin number country, the that as is

that list underway. So we a have of projects good

Pathway about a If estimated the or of of just just that an page cost mentioned, DelMar you got snapshot million. project the we've $XX Energy turn I project X XX, Slide to

our the looking beginning to Ultimately, Eastern for date in-service not contingent variety systems distribution year we'll but to A opportunities the little in Sussex off customers more quarter on this at FERC and grow getting Delaware, Summer a a on large the Maryland. County, provides expand margin continue there, an for in us bit fourth only $X of some anchor the system. million down of Looking service, transmission XXXX, of in County in real and then authorization. than

XX Western Slide transmission Pipeline X Beach, in On Beach this in Palm Palm projects Peninsula Area. we had

total to of the that's All FTSE X in serve the about shown total additional and $XX the them basis to come million and million when feeding of utility construction an Florida significant and underway will which in on on them Public $XX in of home these building are and CNG in margin here, serve commercial all capital to county. or amount part Marlin $XX probably customers a this an distribution not These projects of service by million would is that this Annual to permanent systems. trailers. begin additional,

been that. and So by fairly achieved accelerate date to a increases margin we've months significant number of able result as in-service the a of

Pipeline, On project Slide the which joint the Amelia potential a Callahan is split with million $XX XX, pipeline a about Seacoast ownership Pipeline, XX-XX. affiliate project. We've

million. once So will is is next a pipeline of the $XX.X XX year. operate pipeline, ownership XX-mile inch. service This pipeline building in the EPCs it's about EPC and

XX on ground. have about miles We the

As we've said, our activities quarter. the fairly busy in been I third construction accelerating

the So hurricanes schedule. anything our this happens, that hold weather. is underway with that else of of month what We're this And or we're there. especially advance well hesitate you well X and to may But actually to that borrowing say in ahead we always pipeline. being know never can pipeline I any schedule, believe hold constructed, through that because we or a on

station we Ohio. obtained financing project folks Guernsey Slide in that out on Guernsey XX QX is Power The a power of XXXX. indicated in have

have this the between in working are interconnect hope, late construction again, by in design and engineering We pipeline service Tallgrass of And our facilities and the REX XXXX. pipeline we Ohio. to facilities on

Jeff. you, thank Now

doing sustainability to the Now just to touch what and of Jim in a Jim? area call we're bit ESG. on to turn the over like I'd little

on Thank good to all the you, and Beth morning and phone. Jeff,

an provider. as Our XXXth ESG journey solution our continues, as energy anniversary celebrate we

provide contributions is and services has that time. customers we serve. our A To of where are We to talented a safe employees, ESG and have that the our solutions progress and energy Chesapeake in the are reliable to contributions diverse DNA. Utilities. continued It embedded culture and team at very our and continues, effort communities these over that and employees of our that made now ESG are highlighting comprehensive team proud

many pipeline as sense We RNG across replacement, only and emission the our practices our efforts for methane such us it's CNG, that organization, CHP, contribute stakeholders do. our also prudent, look right not for the to forward which Sustainable to thing to make is reductions.

In our addition, our And safety We to every achievement reason day. the in awards and and continue workplace. not ensure were recognized would all work volunteerism of entrepreneurship, that year and top veterans their employees our culture they our we to surprisingly, to for center bring of And like dedication, for responsibility the passion eighth thank company's we safety what as other row the we and to why can accountability. we safety the a do. a We take then communities. seriously our each the at well-being do protect of is

we leadership for for the Morgan. moments our oversight makes Directors We Corporate the Utility, first Governance the -- And time that and that ESG has of like of she efforts. our thank of to that we also regard, our talent. that Corporate Board in has Kal their recently of into his who are recognize Chair award the ceremony. Who was inducted Chesapeake Frequently, Committee, reminded devoted enrich our culture would Governance and Committee,

as annual you being to XXXX. to for Thank in your year-end always, ESG for continue our much very report efforts, for on updates with provide us including support. continued will you today. We our And

to like this to Jeff. I'd And turn back

you, Thank Jim.

conclude Slide briefly Just on the to call XX.

the set for are strategy, Pipeline I opportunities years, sort finding investment been indicated, opportunities successful fair strong going is back XXXX. see as development us. there, questions, the Atlantic. see we We've robust the amount them. be we let fairly of as Services And business of continue are to to are look over opportunities We just across that and last year our the propane operator. out to us We very very Mid Marlin, think we there end Southeast that turn continuing expand answer continuing now if all opportunities CNG, and any call look the to on several make of to and investment projects. a sense would this And into focused me executing those new for forward. of a delighted we growing, we to

Instructions]. [Operator

the of Tate line is question Sullivan Maxim Group. from from First

some start it think And since per expenses propane expansion. share I that was additional related in you on Marlin it can Marlin, associated if there Besides trailers, Jeff, building please? of maybe I costs? $X.XX $X.XX just related the may mentioned that new to talk was were quarter too. of with -- expansion, that headcount depreciation the charge, about the $X.XX Or -- was headcount to you more

also about I a with can talk expenses are additions. There little were bit it. Marlin. associated Yes, some there consulting a couple of headcount

side expand looking slight as to the transport transport logistics Delmarva areas, additional and LNG the the as into look state. of another business As in and RNG to on potentially well we both

all related expenses some increase in business. yes, to virtually seen that growing So the we've they are

in disclosed this? you Or station. talk about other can this did type next, And work the time the Is first gas natural XXXX? Guernsey it you've history? have me, remind you of December done you the on power for this any company's Okay. plants Power in And

for So waiting come to regard, this time triggers first that the out, the with say, we occur. in were that certain is counterparty we've

a gas. we're the first now. delivered natural time isn't in we've announce to this And the that And so project position

in Florida kind Shore a did been first natural Energy of Most recently, to This of bringing there's back, other sorry, I'm -- If has Garrison that Eastern project the Ohio. But have our had for set Dover. is projects to mean, you they the plants. power Ohio gas their, or history has I to go well. as Center project opportunity here in

about that. so really And excited we're

own Florida. facility in which our serving Eight we're is actually generation obviously, And Flags,

business, guess, business different I to just fuel Guernsey the I -- from mean, is call, or vendor of they is management that it's this I'm companies, trying business a guess, similar Okay. other to type it some mean, I Power? what I

from pipeline We're that from actually Guernsey will station. the Rockies indicates Express a as Power Pipeline, it Partners, service a here interstate building provide Energy Tallgrass pipeline the physically and to

So case. it that. interconnecting Florida, lot upstream project industrial typical we're in business Pipeline pre customer looks pipe, power for with Peninsula us. generator like or lot We pre standard it's where a interstate -- of an in a an FERC-regulated our interstate do this X

to Or does January, in you the just negative touch that what starting noted Hurricane And is Beth time? that recovery release, Okay. then the a Michael In occurred? refer or already of the comments. on short-term that press to costs

with on. that That's not we've there already impact mean, occurred. have That's a had. the that few customers associated back come I were

so you of they're it look the a XXXX. And early XXXX, part year-to-date on It the they're in on basis, going at still not customers impact to those of for have is XXXX. part necessarily when early being the that on

So there, impact there's some is not Kate. really a lot, but there

Most of is on right? interest expense, that

have little still the Well, left part interest the there with the in side. we associated and hitting is bit the but capital of have piece statement. good expense has of our a A income or a gone also you the expense interest storm margin piece, then the on that's reserve,

please? first you range energy normally, me, the a the at second, to Slide transmission done And regulated time year? is for spending, this of last CapEx on And XX. you've is on the side Beth, Okay. on This Do shift the time that? what

Sure.

associated some certainly, we disclosed that range, the Pathway FERC on of the associated depend expenditures DelMar a as the Aspire some -- Energy year-end. other Guernsey on have spent. the we're approval out again first as dollars project organic come particular, of energy the the sooner expansions about, but So some a also and Jeff then with talked smaller through type that will just actually business, that we've project, lot transmission that growth actually of the this we than anticipating timing in you'll be dollars and the And get that and of if more of of that's see project. in time is we're coming so here have, the side, expansions, they the later, projects There's some and

Marlin's had on out we're the Jeff here -- $XX and that some -- these that last And And some somewhere depending information about how million. energy be releases brought on are the far pretty to million get to tried put doing some upon that Marlin's on of big about, other business. Peninsula. projects The there, presence Delmarva change underway. the and unregulated that you're those other And some piece trying we're as we are as expand. be to expand more shore to are relates finalized. so seeing opportunities here to We could that looking there talked And things tight. as that $X the We've we'll between we is

Your is Russo of next line question & Brian from from Co. Sidoti the

total down you the it it deeper regulated looks amount just while the the high bit Just the relatively to a disclosed, that like to little to energy like looks you've previously, range you midpoint CapEx at entire midpoint about the wondering I is the least unreg? in at is the is forecast the $X.X Reg the of to drill million. $X.X about CapEx then up mentioned low about total and provided but seems energy was relative be dollar specific midpoint. the changed Marlin that at versus midpoint consistent, million CapEx and just total at whereas just energy million, what's unregulated about And million. of And $X.X up $X.XX energy million about unregulated $X.X at

I budget. CapEx Well, our it mean, is entire

and So units update month our -- Brian, as you at actually forecast. with it it look we're business looking every at our

slowing projects So there's say business One on slow really may given -- they're and not those to just shifts wouldn't keep can time. continually it into I may if really And projects. because have one up that we much expansion project be refining read in we project the the depending general in we're a have accelerate. the really It's just upon may what another. all horizon. they in on and up It's too one, -- working increasing

margins, project the you And new sense also, mentioned on me. makes Power Station. to Guernsey that Okay, then the just

'XX late Just and a contribution, more So to from like clarify, did it's beyond? gross say you XXXX? margin

have Yes, yes, correct. you that's -- also

the quite And accurate? $X.XX $X that $X fourth million It impressive. be gain, recorded in quarter. seems will great. in the EPS Is to Okay, PESCO like million that's

million, and you a $X million and $X.XX. between range would give range of The between $X $X.XX

an average month. number basis for our the that If after-tax strictly on use take you X and diluted shares

in ourselves -- the wind $X.XX I generally share. got Brian, to as for and costs contracts, we the associated settlement everything down. ballpark speaking, -- we've out there, bit just just But final to that's it we of per will mentioned, $X.XX some given on room you're as any make So mean, of depend that's Jeff close a sure little then to

Got it.

does the to on the PESCO And September alter equity at XXXX? that does rebalance in your Okay. all structure sales, cap pending intentions

equity our it our with target percent our flow, saw meaningfully a over will, capitalization our It to And of will take will slightly, a and ratio back range. debt. as our that impact closer step the longer-term but reduced capital the debt, not pursuit you bring shift certainly, our us -- then raise cash total to structure recently with short-term

look time. structure at But see look appropriate certain our a like well migrating to we'll equity things look in. projects then, the things. that look at lot as mentioned, We'll We it, ebbing a where be when coming to time continue at to at flowing are different placed as I are things. side. at at over But continue have Tesco, going we'll there as the we the back conditions, host on into and we'll think proceeds services projects as of market capital and I of completed us also we things look there look you'll

on see XXXX in in XXXX and or on commentary you of to that queue, growth of in beyond, relative terms CapEx there. some like even outlook you've Okay, and details very good. more over quarters, incurred for -- you've the expenses outlook, examples you've any for some added event on added Marlin increased And it the growth margin incremental past believe you more any I growth just gross investment? And your several that rigs that? the Have looks then Is prior.

The We These like have more trailers added trailers. significantly we of several than tube additional steel bought trailers. the tube And is what come a trailers. we've looks are added that the them trailers of capability in in a which back little bit composite these truck. what semi fairly different were steel originally, fashion than

the And expenses so we handle have our some to for terms these we're done of on trailer cutting larger but not several of only and we're jobs. out able fewer

And opens to quantum costs, but so some it's number trailer, a larger progression a of also ultimately, which the going of trailers, offer volumes from again being trailers us. and our reduce the LNG to significantly to ultimately able up of for original it X per will larger larger trailers jobs

And those. so we've number a acquired of

Okay. Is FERC. you you're waiting And for then on just DelMar previously, cod, believe, you clarification saying lastly, a process approval just accurate? now XXXX. XQ XXXX, were I And the saying you're a mid-tier approval, project that still

Yes, we hoping on so in what -- XXXX. we're certainly the date we're -- quarter we're then fourth is in quarter year. I saying are that this fourth of side, seeing in-service of the -- think quarter approval that we expected And that fourth Brian, our is get

quarter Fourth of XXXX.

Okay.

would I you But will add. now note, I note, just mean, you will

that constructed. there you kicked if even associated is You press release interim at will that project look are services project before with in that though today, note, our

Florida. So for same that's in And mind. talked Eastern the standing Jeff that it's long in about history. been thing just keep

of opportunities sometimes our or on service implement being to behalf whether services, to Marlin interim it pipeline. bringing on help provide available of capacity We in it have utilization be interim whether that kind

Right.

Okay.

gross from guess, contribution, you're the comfortable unchanged I prior with pathway guess, is I basically which So disclosures? projects margin Delmarva is

correct. That is

next Harbor is Clear Roger Management. Liddell the line from Asset of Your from question

to I up on several Yes, wanted pick points.

XX the there's to exchangers, the an that lead to them. heat the first ESG, maybe energy then that designers the efficiency E Guernsey Eight next Flags X be that pictured is is to demonstrated The part all I'd and appears could in of of of forward. from in plant combined ones. you cycle kind racks open think The mind. substantive you the X quick and more like that The extracting on -- issue initiative going squeal heat, right project are what's in the my pig of the Slide thing on

me Guernsey, frustrated. didn't You but design a leaves the visual little

to. don't choose you need You unless comment to that one, on

to. not I probably choose

exactly is combined about know There an I saying. cycle what and had operations Although, actually some opportunity, conversations we you're here. have

So is a possibility. that still certainly

it term see is much. Yes. happen may that electric and dissolve the with company. right that anything Jeff, But referred But the RFPs If authority and for now? that's upside opportunity the never effectively right out it I on no on giving itself. me, represent Jack's there follow you to putting for you've Jacksonville and not to, any going don't to

suppose an JEA price ourselves have and depends had couple not number agreement effect onto of ultimately with that on up directly with with an and our on we're and process, a been Well, at lower from on ago of through still ended the interconnects flows FP&L, ultimately There point. some power -- Island. how I executing very arrangement obviously, with FP&L it Yes, agreement Amelia moved in a years And rebid that involved for for a significantly in minor power JEA. years. we process we I -- purchase

entanglements distinct. And don't I us. few anything see operating there, on but potential quite price some very are our for of So systems guess, are I side. there the Certainly, electricity

occurs, potentially there regionally. spill going type a over issues when especially I investor-owned, utility political always a guess, ancillary are of to to have And transaction an that a that so municipal tendency

eye So we'll in an be shape of all keeping But that. probably think pretty good on we're here. I

hope estimated a would what that on? in approval be of million or awaiting project are they $XX ultimately be you've as the back series Is I'd were, laid goes area. that bringing XX, particular at in cost apparent sorts program, that weren't to into and it the the has Yes, or feeding what the of to opportunities been robust. well, like to first done doing sketch but to it useful virtue as there beyond of simply were okay. Slide by DelMar what gas on for the beyond, down the all opportunities. that coming where impression might your I it past, and opportunities Delaware based is out availability wasn't, is of you've planned My and in whole occurred disclosed you think Maryland both out fraction making what

Peninsula, you I of but the indicate, we not areas. are Eastern a D&G with as things, also that distribution development the Shore say in variety would we of Well, can down do that additional systems our only advancement hopeful, those

we upon these areas. thousands in our certainly Part propane those a we a over So residential already and will development time, were are And in we you begin would variety future doing of then, of tomorrow or in. areas went gas these thousands for to years the community continued no we out areas, surprise. see activity exactly have as from will other convert begun both from this, opportunities I our here. expansions, over do trying we ago become executed is also propane opportunities to expansion gas so, roll system and of in from And things. gas. those but what we significant And over or in to to -- where agree, natural there propane started customers put distribution and tell that have with here natural into then perspective, I XX agreements customer industrial/commercial when these unserved developers

might And gas you for tranche system the community next as so activity. the of we're looking imagine,

front But can of we system. these we're expanded, in out that existing very So and expand we we hard system looking our build areas, as sure developers continue gas distribution development. customers off the can get get in pipeline there. to have of I'm our to

So areas we're yes, these quite bullish on

harping But finally, being is ultimately at else, Again, of really hope, nothing forth. to And not Okay. least This significant as the there headwind of with, I scale, used operations, E would a what RNG are. the part involvement development I those deflecting of a so renewable I'm opportunities any on-site chicken thesis. fossil think power clear on proposed natural under is and And of way with gas. important. if ESG.

there What's system real about lot R is a of your gating? talking to an being got gas you're supply? of scale. supply part resource. big If a the opportunity the be There's How

system, all couple which just range, based Could chicken take collection, cleanup on the of would a our run with pipeline discussions in care X,XXX general extraction to customers various quite potential to middle methane not decatherm be Well, but close. a parties. of it waste our into would I'll X,XXX the of Delmarva, give processing, on the of residential day examples, you back that we're

you could And envision, system. can assuming so get green our we into gas

projects looking could a could with the customer there renewable Florida, at. landfill future of You wastewater that some ranch in part gas, that natural in we be the when the time and our of large down least a significant a facilities. treatment base envision residential opportunities our are burning see we're at We've same cattle some looked pursuing. we There's at

of significant gas take methane it systems. positioned place sources capture. a in of are we that perfectly right can in was and to one sort our we we're the And reasons that of number inject frankly, that There that bought that believe is the we Marlin,

ultimately, the two -- issues appropriately of upstream it that those than the source. source the gas somewhat are that BTU around that have understand chemically, So blend And that can we different fuel quality content right we can we'll pipeline pipeline types. characteristics

that So downstream their customers any in don't issues appliances. we have with

out. all figure And so to that we're hard very working

operational in And that Eastern same at tariff. to recently, the our thing standards and filing earlier, standards FERC begins is Shore as One of done I we've the things we're other working the areas. inside and that quality our mentioned establish D&G to Florida do

agree but We would of as Marlin, we that own can issue that the only, we it see with ESG indicated move as that there see issue, fact think by of We are not And this pretty we potential think a here. I it deal. lots virtue big a profit opportunities So as is gas easily. you transportation company, an a around you.

make the when economically. a gas have Marlin one And pipeline, that to fairly to real with the the But any generation work not point of attractive consideration. easily from you do usually, to how can project build so and is we that's point. R&D stops you a usage economic actual And get the

but our on not R&D the distribution systems across we And here, are systems. of see just certainly focused opportunities Marlin into highly lots for So on country. on we our coming system,

well hope us keep calls. that time and posted I Excellent to from and in answer, time you'll done, these on

will. We

this [Operator turn Jeff time. Instructions]. the further Mr. No over at questions I back call Householder? to

appreciate you hope forward have much look before. weeks we thank in morning, of season, dialing a see months. talking with few very I you great if and to you next Well, the don't you. all we over I and this you And Goodbye. holiday

you. Thank

you. Thank

gentlemen, and conference And ladies Thank you for presenters. you, concludes participating. this call. today's Thank

disconnect. now may You