Chesapeake Utilities (CPK)

Beth Cooper Chief Financial Officer
Jeff Householder President and Chief Executive Officer
Jim Moriarty Executive Vice President, General Counsel, Corporate Secretary and Chief Risk and Compliance Officer
Brian Russo Sidoti
Tate Sullivan Maxim Group
Roger Liddell Clear Harbor Asset Management
Call transcript
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Welcome to Chesapeake Utilities Corp Third Quarter 2020 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, Thursday, November 5th, 2020. I would now like to turn the conference over to Beth Cooper, Chief Financial Officer. ahead. go Please

Beth Cooper

doing good this today and as results. We you and to employees coworkers appreciate hope at our safe. Thank Utilities keeping normal, Chesapeake review afternoon serving our possible. us continue are and families to you, effectively year-to-date safe and third joining staying that We in you operate your everyone. well new quarter as We customer and our

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

and our presentation via or and IR We also on call Webcasts app. under accessed our of remarks, prepared questions. After for the joining section us website open management can members we Events be up virtually. will Today's have subsection our other our Investors team the

today third COVID-XX results, provide on for to insight outlook numerous the objective our our progress business our on estimated call the as to-date future. and as on into an Our for our initiatives well year-to-date update is impact and strategic quarter the of

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

Forward-looking statements provide Form Harbor could results. to that on statements Form on and on actual for and XX-K such the reports our projections XXXX information our Safe could XX-Q Report Annual differ differ XXXX the actual forward-looking The cause of results. materially from Company's statements section further our from factors quarterly

details highlights and outlook several insights our remarks Jeff to response strategic growth Jeff? and Now our third some call to on I'll over COVID-XX the quarter into forward. more performance, our opening on on going some initiatives provide turn

Jeff Householder

all our Thank for Good quarter you thank you, third call. joining afternoon and Beth.

for accomplishments quarter. third the we achieved we significant reflected the that call, on during As prepared this Company the

that accomplishments several business of occurred development initiatives start key me our by highlighting some this Let and quarter.

that list characterized teamwork this success. along entrepreneurial the think have long the exemplifies Chesapeake spirit with results our collaborative I for drive and

as in that's keep ways find true growing middle especially a Now, pandemic we of to to our business. viral continue the

know, our in in all several the way investments and generate of on Florida we Maryland growth. project The the we and feature from earnings future Pipeline and X are outlined catalysts our X placed which Callahan Pathway growth construction today of June. late Slides our significant pipeline in is Energy include you As under projects. Nassau accomplishments the we details in Del-Mar and execution strategy County, service

the quarter operations full was first of our So third quarter for pipeline. that

with which distribution systems gas Recycling rate on commercial, low-carbon gas renewable Energy communities contributes agricultural continue Waste is projects Westover subsidiary renewable projects Peninsula. Maryland, but gas a Our to We're growth pipeline the These for project and and natural bioenergy that will support landfill at our customers and utilities. average development for significantly partnering that with other long-term Eastern to Delaware, natural and In finalized chicken distribution the We're a above in long-term for footprint recently waste energy a broader of the both to facility purchase support midst natural RNG interconnect. participation the Gas evaluating for the Ohio. gas We in from firms not in of several The Rumpke mitigating pipeline Aspire the and rate for Ohio, emissions. into landfill system gas, excited only support Westover, add local in transport we renewable quality Fortistar and RNG developing with environmental waste agricultural & of disposal methane to Delmarva a a biogas project. will agreements challenge the from Maryland. produce organic pipeline Renewables in We're we plant take negotiations to our produced will in fertilizer of renewable of partnered the partnered future, Services natural also for facility. facility CleanBay Shore the landfill Most waste. gas a potential Marlin our

a XX-mile pipeline transport build our system. into RNG gathering will Aspire to the

During equity end were reflective included the issued Index at-the-market equity its our program Gas ATM business the acquisition steady, and Elkton of to million Elkton plans. closed third July Commission purchase of the way and the Utilities access shares Company growth. of growth. the SmallCap XXX on of of we're this continues was seeing be integrating million to at-the-market the Year-to-date In Gas. late in and the enhanced SmallCap Maryland resulted the in to the equity Chesapeake quarter, Cecil honored the quarter. this we Chesapeake talented the direct its time $XX.X through offering ultimately $XX of to already into our equity well at able established end our reliable Service into which We added September, stock execute our to support S&P And Maryland of capitalization increased Index. and strong stock dividend approved Public We September, the through team end stock over We family. new growth provide of manage into S&P an capital sale to new was welcomed October, Near that on area. to increased of Chesapeake County, our at continued are earnings in and program to At Chesapeake XXX, transaction an the Elkton same the sheet Gas our market and the end its balance as went structure. has

average long-term XX-year X.XX% borrowings. with We rate of our issued reduced debt short-term a new and maturity of million at $XX also an

CNG our facility rebalanced equity debt has end the additional on that this and for The continued frame build year $XXX balance to Port is of capital filling our expected at meet growth. Gas a a Lastly, ratio at the our renewed strong and September, a debt Savannah, we needs an well the provides of Atlanta positioned in Also interim station partnership a lending from announced bank time quarter, access our we group short-term amended ahead to Georgia. Light million sheet with third equity we're and our basis. of to offering with syndicated

site this and subsidiary a will mobile our new facility, expanding Georgia Marlin transport locate Carolinas. at logistics the in CNG Our services into markets

acquisition cost very workplace Service that a ninth two was earnings. million Florida approximately X,XXX this Western propane by employees. of honor. the this in consecutive Florida I week right, Counsel approved For of settlement propane this Company, only from subsequently In the agreement our one year Michael our customers. it's proceeding, Natural a appreciative they based distinguished in And, was out which for has We as $X.X Chesapeake the Commission. The retailer. named yes, generated Gas the Public Office said top in their Energy company that announced incremental the Sharp the of fact that subsidiary Natural Utilities Delaware, Gas reached in of propane We're are with of recognition companies year-to-date Western agreement Jacksonville, serves representing but recovery earlier Public earned Florida Hurricane name,

and expands are growing presence We Duval it the propane counties. about as our this and markets excited St. Johns acquisition in

years. share. dividend a accomplishments declared XX $X.XX now COVID-XX operational Directors These today, significant business Finally paid of amazing of XXXX our January impact We've given our perhaps for per pandemic our Board are consecutive dividend even on a as Chesapeake milestone continues. It's earlier the notable, the Utilities. for

a which Later enable guidance. our initiatives performance the in these XXXX on $XX margin our EPS discuss major initiatives moment third forecasts now want XXXX and of we'll strong third results. our in of commitment our margin All and generate capital spend us I just to projects our and given projects quarter and contributions and specifically to to in table $XX million million quarter of XXXX to a margin reaffirm announced year-to-date today. presentation,

above the GAAP quarter earnings per for XXXX third reported period. That's was prior share from per $X.XX. $X.XX quarter Our share $X.XX $X.XX earnings as GAAP Year-to-date increased to results. third our

worked working our entire results keep COVID-XX of as that businesses. energy hard not the hard indicated testament has to our to for just but the growing projects meeting expectations It's our we're only earnings. contractors Our contribute keep we I executing continue dedication future also and face growth drive reliable will suppliers our service, and to team to the a of customer our strong employees, and pandemic are that delivery in

essential was million conditions, Speaking travel for personnel. estimated primarily partially driven has equipment services bad nine personal the our costs and a higher operating three and delivery debt by support additional times. are the income work frontline financing respectively. line. the these helped commercial energy, and that impacts and reduced simultaneously ongoing the Company as during our $X.X including The incremental unprecedented costs with a by largely these negative Lower and the Fed's associated protective the for The industrial cost due expenses related operations incurred in actions expenses COVID-XX, expense, tax of of COVID-XX the Company's COVID-XX, reductions. sectors, the result expenses expenses moment on XXth, pay September impact lower other consumption of were restricted for have of federal related to CARES Act premium impacts of Those and months $XXX,XXX operating XXXX, remote to bottom the reduced had net earnings COVID-XX offset ended

associated is have with pandemic regulatory and however, COVID-XX net to Company has still the these establish regulatory assets incremental the Florida expense impacts. in established the do, regulatory not authority As Delaware,. Maryland We ongoing, assets.

determine results. and communicate regulatory Beth scope net recovery turn on the quarter We a the I'll we more Beth? deferral in updates of as our discuss second of to timing on back call timely basis, the any or our detail to COVID-XX impact actions. expense will

Beth Cooper

Thanks, Jeff.

year. to X, the of in were compared tax second million was as net in the $XX.X of with Act rates resulting XX% million CARES year. the rate the $X.X CARES Slide to quarter last XX% The last of years this higher to benefit was Turning Act income million in in federal carry quarter million losses enabled back to a for quarter. result a $XX.X to The same $X.X operating compared tax year for us net Year-to-date compared $X.X XXXX. income recorded million year-to-date earnings

the $X.X per in terms quarter same In year EPS $X.XX release year compared the grew after last $X.XX compared our third for performance the expansions Pipeline margin contributed year-to-date the to earnings Callahan quarter. settlement million and $X.X share. operations, while detail growth new Shore's and drivers shortly to third Gross Auburndale continuing $X.XX issued for the close. X quarter after $X.XX as $X Hurricane by from third County, of We quarter Pathway in from the per summarizes the project. service margin of from quarter. $XXX,XXX Slide period market We share the initiating from the additional Energy of EPS million. projects happened again last from $X.XX of third recognized to by Natural million. Michael to gross Eastern key this million grew our $XXX,XXX yesterday Western that proceeding added described gas our $X.X Pipeline, increased generated Peninsula Palm Beach Del-Mar to customers end

customer above average. growth for growth our national customer organic the the reached significantly X.X% residential And rates Our Delmarva for remain example, quarter.

operating businesses Infrastructure our Boulden resulted additional in by projects And acquisitions, services Gas in managing and growth million mostly as normal. gross amortization as and its Services generated favorable Our and gross increasing new contracts. in in expenses well. this inception. $XX Elkton gross business, since expenses lastly increased Management Michael margin CNG with The the associated quarter of and $XXX,XXX in of margin XX% demand increased traditional operating Hurricane new by acquisitions Florida growth Gas gain resulted contributed Reliability for driven several margin or associated this our contributed has $XXX,XXX while the depreciation margin Gas with in GRIP over $XXX,XXX settlement. new Marlin gross were Program, cost

reduced increased you expenses second Hurricane material. in see accrued first and new $X you Michael first gross resulted and to We exclude customer well the and margin expenses of amortization, not If depreciation with settlement. Unusual for acquisitions as in recognized Interim margin unfavorable impact reserved gross a that net quarters operating quarter those associated can million the consumption items previously million. rates was tied quarters. second $X.X $XXX,XXX. were the COVID-XX this our and as benefit of Decreased in and increase the

personal for focus including continue to unwavering recommendations Slide new and remote in business the with on normal our we customers masks, Center adherence administrative to X, or of this protecting operate CDC social to and Moving utilization Control protective equipment. distancing, our services employees of Disease continued and our

distribution Bad respectively. income Today, discontinuance as regulatory million million recorded during three any significant XXXX onsite without the teams a are until governmental collections the any net of $X.X share. and by potentially on operations or and and from expect months Our thereafter. the was the for negative nine impact and $X.X COVID-XX expect remote reserves for income mentioned we ended expense the jurisdictions debt continuing from Jeff per then restrictions increased earlier, interruption million XXth million The businesses. $X.X not net impact XXXX establish remainder have COVID-XX. not growth to work have operating for a of was projects for onsite hybrid pandemic authorized on schedule and To-date regulatory solution for non-payment. administrative COVID-XX reduced service $X.XX our We the for given $X.X assets three as and do offices September

impact analysis continue have looked various at to projections assess to related recoverability. We this and and

we forecast approximately for further capital remains The for provide $XXX will assessment. expenditures We our update target million. complete XXXX on as

shown Our now really narrowed and X band a to Slide has $XXX represents $XXX as on million.

over year-to-date notice projections XXXX from distribution our will to in capital majority basis, our of and remainder capital million. year. and a the we expenditures have lower of remains for million regulated invested end estimated On under just we investments our million $XXX the spending moved $XXX to our given You businesses. The $XXX of that transmission date the XX%

would on We would carried next be attributable to and this track to timing any construction year. are over achieve and well largely variations forecast capital to be

and Slide portion on XXth, of of billion, long-term September XX% debt see stockholders' comprised at capitalization of XX% outstanding As short-term and borrowings under long-term fixed total as revolver equity, you rate debt. the $X.XX including XX was can debt XX%. current short-term our

that Our strides capitalization total at recent to would basis. and in our total have us we our significant pro issuances of end target be approximately had back migrating regard. to the capitalization XX% range ratio able on Recall target equity low equity moved a that that XX%. of We were equity forma to indicated began we make to

Chesapeake company equity increase ATM beyond We stood stock in and the and We Slide the continue S&P the to that time. until August expected utilized index to to a was our following over a Index October days was X of the reinvested the at XX ATM with equity benefit this September XXth XX,XXX million as the to the the new October SmallCap prepared added traded earnings that million effective early to equity We're to to shares the in Xst. to That compared gave tremendous portfolio holdings. issues companies the detailed back in million raising XXX new to $XX.X our as three This year stock successfully program on index equity small a momentum Chesapeake for plan regards SmallCap of shows traditional was slide. being we to significant ATM considered capital. to The S&P add. is utilize of business. on volume issue CPK addition discretion good plans volume the September ATM late last before our Chesapeake up benchmark for over to to use was similar the into day $XX add our cap XXX investors Index market volume their index with sought about us.

future back to we for and for support the balance to growth Jeff is issue better purchase we XXXX positioned the current growth. call now equity and under additional I'll our our our prospects Jeff? dividend and able to turn and the discuss are Given stock plan, direct pursuing were now reinvestment opportunities beyond. sheet ATM to

Jeff Householder

platforms Slide our Thanks, XX growth that the plan update we associated every shows year. with strategic Beth.

one, total targets; to that the in our strategy as on businesses further can criteria. seek risk of dividend completed growth Our can or driven our and meet our We We our product are; that Investments provide an straightforward. fundamental diagram our businesses; performance, three return we us build businesses. year consistent related opportunities core return eventually footprint. of adequate return strategically of earnings to envision projects by XX. investments and and are peers regulated meet growth to provide shareholder expand and short under Slide is achieve stable, I exhibit three, fairly LNG. non-regulated our profiles constantly the this relevant We upper look over predictable our highlighted are pursue our next across quartile a manage non-regulated foundation opportunities seek existing the continually RNG and to that primary solid long-term for identified that capital investment at that to energy this two, long-term and for value On way that growth we Projects are targets. pursuing. on CNG, slide chain we've prescribed drivers and expanding the with

to capital mains pipelines we businesses, services and noted Beth invest customers also our strategic notably XXXX, geographic or comfortable add As forecast most with still We're expanding distribution primarily regulated investments unregulated Marlin to and Gas a to Eight in businesses, in and transmission the allowed areas. existing to new returns for generated above distribution regulated similar the increased Aspire like Natural all Gas in utility at our acquisitions propane returns. characteristics consistently regulated have Western but utility Services, Flags, have regards Boulden

we than our record us, are are regulated our They we and means higher track non-regulated growth and achieving do. EPS EPS ROEs are the also For for who support profile. growth to businesses projected core what our to and

engaged we in us able position the and As future projects successfully many been Chesapeake into growth. them and other acquisitions for to actively we've integrate complete believe on that numerous projects and slide, we're shown family the

customers renewable us local natural give and new particular transport to gas. in distribution gas the opportunity investments pipeline for expand Our

other owned on in acquisition founded more XX. October of On XXXXs. a in detail acquisition Gas, we Let completed Western XXth, little the most me recent our team We family on an increase provide Natural the propane and a Slide volume quality business serves Natural territory will Western Sharp's gas the continues of market base Florida as about important Amelia the of Jacksonville, in opportunities to excited to have the oil We're of area the that success. been business that and to that customer approximately current our Island, Sharp X leverage Natural X,XXX Western also annually key to with the Sharp provide operate under legacy and Florida will Gas our service grow. service the be commitment about advantage adjacent and gallons the customers. services offering Nassau million County believe Northeast to to on market programs brand

our in As Hurricane Commission of Florida $X.X the restoration team proceeding Michael cost PSC the in associated amortized distribution settlement million a September. services surcharge million the over interest our rates Northwest Service years. XX, a in on our asset, of regulatory shown We six resulted as settled That approved Division. costs storm proposed electric with regulatory recover with Florida the on to Slide successfully Public Florida annually. limited in of including recorded be $XX.X to the

XX In related cost that, of we base quarter in third million $X.X addition rate release. hurricane. an we're press is Slide capital base included our collecting associated with also the cover annual revenue increase in a our table On to to

the be the useful to it out we Given components thought lay details. the would various settlement, with

the year-to-date. We the the $X.X from operating quarter projects table. note and gross $XX year generated impact margin for following and projected million key see can the you the the of As year-to-date income the of approximates both settlement million in for income net

million Slide growth, and margin. $XX shown Our the gross incremental pipeline projects In projects Natural XXXX. Hurricane for XXXX for $XX for transportation, to and million including key regulatory respectively. million table and million gas $X from natural pipeline addition $X Gas for total, and Michael various $XX estimates in for this the XXXX accounting years generate Gas projects We in margin is respectively. these XXXX for and Key XXXX growth $X.X in particularly of key $XX initiatives is acquisitions proceeding approximately the and and and $XXX,XXX the are incremental The and million virtual initiatives Western XXXX $XX Elkton million expected on latest renewable XXXX approximately table $X.X XXXX for key in in margin XXXX represents million expansions, and initiatives. million XX, for settlement million note

Residential organic projects $X.X don't reach until and growth reminder, projects this Delmarva we natural And $X.X and of from on split represented fairly residential million representing include while with XXXX. generated nine growth representing organic evenly Florida XXth, X,XXX $X.X XX% customer we've margin industrial a over Delmarva million. ended include September definitive margin customers commercial in maturity. distribution only that To has additions. approximately in Florida As the we has between growth this table million growth. added been growth and has in the months And gas date

to overall to discuss Let sustainability. me turn support our they now the, over the Jim? how projects we're Jim environmental fit with call RNG I and strategy developing exciting think, to

Jim Moriarty

Jeff you, and good afternoon everyone. Thank Hi.

an in Chesapeake launch. readied are ushering be projects to being excited are sustainability. commitment to are where our indicative Utilities RNG several projects of era here for We These at

we the are communities gas to emissions. working lowering the of We serve by carbon footprint greenhouse reduce

Bioenergy of organic anaerobic from produces of incremental would global make soil $X ultimately natural the The owned transport RNG opportunity distribution will Chesapeake our once Chesapeake $X totaling from a like facilities million. and Gas by will I new and waste and operated converting removing be from it and and be processed customers. plant. use excess renewable by is developer gas poultry relationship in million gas also Utilities. will that Utilities' through products delivered Gas This a Services investments by discuss Natural for resources Marlin involves our associated quality digestion digestion built, First RNG, processing it with will Eastern Company material. DevCo, Shore receipt RNG is organic into become energy at with The RNG. leading organics utility to healthy waste this generated Delaware The project facility plant system

renewable partnership gas, Utilities and enviro-tech second CleanBay with provide gas on and usage of bring our to focused natural vehicular associated renewable Delmarva generate opportunity greenhouse includes operations. gas project Company sustainable second production to Renewables, natural will our additional a the credits which The with Chesapeake

of Fortistar of project transform generate the production will waste the XX,XXX XX,XXX will RNG portfolio and the dioxide equivalent carbon This extract landfill in company. & capture year Fortistar capture of flaring with from project Recycling newest burning Rumpke Ohio. renewable tons tons represents the gas Our methane will and generate natural RNG. methane a Waste in in the project partnership This methane, to Ohio producing natural in a sustainable The Energy simply it energy, of distributed and natural into to stations gasoline renewable of Trustar of for gas. be emissions, via Aspire per or The pipelines. the will gas Instead our dispensed enough gallon X those gallons diesel through fuel displacing Energy, gas RNG vehicles. per year. fuel XXX about That's trucks, the fuel naturally be vehicles equivalents fueling biofuel million will for occurring

valuable will show Marlin transportation, project RNG chain end the the source that job to Shore, scope LDC, value of the opportunities contributing Aspire user. and and units, business the from in Chesapeake's Additionally, Eastern the transmission RNG proposition value projects each the create delivers expanding Delmarva community. to These

and grain poultry excited of sustainability Bay. production, We agribusiness on the industry, poultry while to environmental enhancing critical are the processing farmers the Delmarva, help support Chesapeake

conversion support the in and Ohio. RNG, emissions fleets We the to diesel while equally fuel are reducing also methane of to displace excited

projects for where first gas time going as to to to Somerset we're bring commitment service These fuel the natural sustainability. helping County, replacing reflect woodchips. well our be oil and are established We to environmental Maryland

environmental Utilities to on build Chesapeake how to justice we continues is XX, governance bedrock dedication This a commitment ESG, and focus our on day. on social As to every sound principles. shown Slide stewardship, work

has and diverse the and creating recognition growth one workplace consecutive long-term volumes Our active our governance which to to speaks value Strong commitments for culture, as our essential and top development of about continues our the and employees all promote of corporate inclusive year engagement our communities. ninth been a stakeholders. to safeguarding the

adopted our and our as effective that a policies could seriously of furthers in the extending safe sustainable and with we people in stewardship Board informed beginning Directors and throughout organization. ongoing chart and framework Board provided our the friendly embedded company which engagement, committees have other responsibility Our to not its and operate road Active guidelines governance. for manner is to be and have practices ahead. together more our environmentally across important take continue facilitates We very our a that

employees team of we important the center serve. long only not is it The the and input our our a Directors management safety term. other, discusses risk objectives; priority are the are. from providing as in Safety vibrant identified in with safe in safety both factors our ERM short related strategic performance the we areas our with our and priority safety embedded our risks program, mitigating for we ESG Our achievement regards to is of on an focus part a enterprise initiative, communities and is first superior In program, risks. to strategic interactions to Board with each and workplace our who key make customers emerging the committed top and term of

The EDI culture backgrounds the to better embrace central mission share to communities the and committed non-pay to ensure that instrumental skill benefits is affordable to commitment workplace company. experiences equity and engaged continue diversity who businesses. We all for services enhance EDI is and receiving and plentiful of our day that a the environment to want further clean, energy our of and sets experiences are formed work be employees, our communities value collaboration inclusion, hard diverse to every guide around XX. delivery and In we serve and Council help engine Council work driving and with we so Council the will the path EDI the that providing in who we for pandemic, forward. helping ceasing our midst newly serve providing and organizations their values working is are background We to as in community us is craft to one aid Whether all bedrock our are help them very vision of to with their accounts bring the our the continuing to our no is that Slide enable part. it of employees a current, we improve doing diversity highlighted is discounts, The we plans to our local on payment make that in and the funds left our customers behind. to

pandemic. have donated the local various the in we aid organizations in addition, of contributions In midst to

engaged We carbon are communities diverse projects teams serve. footprint we excited the about reduce to the of by and under our the way

commitment remains when while the steps needed, where it to Our to steadfast energy deliver stewardship. advance to necessary take environmental continuing our is and

projects very RNG example with our we'll for we of are part to a ensuring also carbon call do back more a newest our you now turn sustainable being footprint local clear the the appreciate Our I communities. and and Jeff. future Jeff? to in ensure all lowering today

Jeff Householder

that the XXXX, XX. to billion pleased to five-year as continue Jim. on through Slide Thanks, we our depicted I'm report to expenditure of for reaffirm XXXX guidance $X years up capital

of reaffirm with is in to EPS also our on X.XX% shown $X.XX our XXXX We $X.XX growth Slide line expectation of earnings to X.X%. guidance which XX,

long-standing that infrastructure, targets. poised a by balance and Growth ending RNG. utility to is the access our sustainable financial like our growth. periods our ensures to continue compared will returns in plan we to XX, for solutions our invest We is underpinned return that sheet achieve top strong On annual shareholder in and opportunities track We'll businesses capital that October five-year to delivering of peers. are XXXX investors XXXX to our energy investment capital Slide represents our complementary regulated record XX, for maintain

quartile volatility. Chesapeake Utilities, top market can LDCs, immune generated like see, other was return. not to you recent the we've shareholder gas As

We long-term that business since investments Fortunately, the we it joined businesses Index. are trading consistently SmallCap natural particularly We're that we generate currently to utility strategy understanding nicely, that We recent to a complementary utility regulated a appreciation reflects to strategy. country's returns. prices unregulated consistently stay us our investors' true key of and component stock S&P believe in above enable foundation our believe our we is gas near energy strong our price that rebounded to this the have XXX high. all-time

the that propane. serve believe the are energy We natural markets deliver services or those whether we gas we also value

on have the customers mix, RNG and the strategic we time, given a now to have capitalize business loudly sustainable regard. future. to more in At approach opportunities spoken new provide this quite expertise a that bridge same and from like our Our opportunities here

Slide stand new and executing graph challenging, new We continue market really we with strategy quartile top and we sometimes We opportunity market price our is opportunities and opportunities RNG us. shareholder create on like growth returns. of XX for our changes the will be pursue prepared delivering are we and believe that On but to to anchored capitalization. ripe continue have foundation a stock as may in believe but

And rest identifying commitment high price on next special results strong energy represents you. our an is proud you X our be I'm our today and front stock be questions our moving adding happy to In Chesapeake ongoing generate to I solutions all-time would innovative their to employees. lines any the very reliable our Thank take the to in work at November circumstances we least $X.X let thank and have. all of dedicated great They've that Our Utilities a to so to of truly think on all employees accomplishment. and billion. the of the but the for this for on about Xth, me much delivery time customers well at a it's difficult pride up safe to we've is market capitalization remarkable. done done not-so-small delivering the closing, us set quarter, is would non-eventful, a which clean, everything done it typically they pandemic, normal and of Achieving again. XXXX of in may I year. When third enough, quarter for fairly the none. during date address


of Instructions] you. comes question Russo with the proceed Brian questions. Please first Thank Sidoti. from your [Operator with Our line

Brian Russo

afternoon. Good Hi.

Beth Cooper

Good afternoon, Brian.

Brian Russo


million capitalization? it $XX ATM to $XX of you where it is are are really on the Just like program accomplished, million with the the the opportunistically – that issue $XX even to curious looks equity of look you remaining or million necessary possibly just not going with the, given out

Beth Cooper


about and dividend issued million In under we $XX reinvestment ATM inclusive our that of so September to So did just under October the issue plan. closer total and and total million $XX.X direct maybe though were stock a program. for highlight, issued that's we purchase to shares

You're right, Brian.

mentioned to comments, the our low of enabled end to us it I As closer in my back move target range.

I adjust range. that opportunities So we as stay new capital as time-to-time can from to appropriate, continue our so undertake us that you see stay close to we think will try around And our make we'll structure target. to we that sure target continue to

we consider So not from debt that doesn't equity we're make but may time-to-time, that to now, and there sure capital structure both issuing stays capital balanced. our right mean

Brian Russo

projects on of a that relationships perspective bit opportunities specifically the The in Okay. is earlier. flexibility a maybe then more you to discussed growth what have from size flexibility versus XXXX. now regulated could in relative seems Great. a you – your to just opportunities recently little you've just And pursue it RNG and follow-up maybe on done existing unregulated talk expansion with you

Beth Cooper

up, that then just in, what that our and if opportunities say I'll to is year anything growth. But begin distribution projects Brian, the Company. have in that mix the you time; you're we regulated Jeff think from we're the to to to that going foundation is same going don't of see the to unregulated investments over mix to and also that throughout I happen wants We're because of to there not regard. can there you're growth when to to continue there's have, we've We've got business to is potentially core table, acquisitions, he to after some our look Marlin and anywhere pipeline to we've continue similar have from XX% some propane of But to be consistently pipeline the But to our projects regulated experienced I opportunities see. also the continue mean to us I at grow not going new we have a And of that's jump regulated and included organic on system that's XX% would add. going look We're simultaneously that we've I you done. end I that, is that opportunities services. level the going think investment, businesses projects continue what in at every going we're are capital to would start-ups out to you'll we're of to all utility looking of you is with continue doesn't going we've see Because year been side, there when at. in a of that fortunate expansion, because expanding ask margin year. there see that kind finish going that you of expect on get growth time. over

So I there know add. is that's not you want anything don't going to if be to Jeff, changing.

Jim Moriarty

covered it No, that effectively. pretty

Brian Russo

Great. And the Fortistar RNG in announcement month. Great. then made Thanks. earlier just on

that related You else. impacts touched Fortistar any if financial to discuss that. but Are mentioned that I'm something there on this time? GHG, You sure or or was could implications at not you

Beth Cooper

out We've add to domain. the them not come any in the at have of year-end put end project that this financial table That is related will Fortistar, information our forthcoming point you'll margin us was our public with Jim that Yes, participating. at as information of additional the that actually around Aspire gross we the Rumpke where see were out result. But comments year. the made to we

Brian Russo

very you Thank Great. much. Okay.

Beth Cooper



this line further Please the no your are next proceed comes question. with Maxim Instructions] [Operator question registered Group. questions with Tate of from at time. There Sullivan Our

Tate Sullivan

Florida Hi. the total on mix that and the propane propane meaningfully after Florida? the expand than a opportunity you. the then, you you into can company now Thank different And Mid-Atlantic acquisition identify Jeff, please? did operating to Florida, acquisition, of customer Why is your propane talk in how about just business in

Jeff Householder

sure. Florida Well, to aligned Sharp we This customers other Florida. in so the the or operations. It's XX,XXX serve somewhere or closely business that with straightforward. is in our serving Florida neighborhood our fairly customers We're That's in opportunities in propane other really addition operations. of

Duval as Johns our Sharp in branded a such. different And the we're folding areas of so, St. operation as County gas doing we're and around in Jacksonville, X,XXX we're serves customers from actually kind into this County. full discrete and area market Nassau It what

areas county the And are see not a of so, mean, that a nice deep here there's areas actually We new There see really Jacksonville in of up years. at of of of relationship northern of Florida. that a and as is and gas the company by a that so this State there load I market area. one very lot growth high-growth we is the going Florida reached natural a as a a for attractive distribution. with opportunity. heat it We're number had in little a back part we lot

they fairly nicely. fold They when family it in it finished, a and and will we so called quite And for opportunity that was was the that – – decided they obvious us. it's looks answered like we

Tate Sullivan

other you those that Thank you injecting are RNG pipelines is have is, into of like sounds me already for it your many then – timeline any to the and last evaluating. And or projects, projects? inject background. the Okay. for others What RNG that you from you're

Jeff Householder

probably in projects, see we're and will that am up. capital looking might Delmarva But in far something a that talked can project one system the come different that for additional see opportunities. little online, that We we on the not Ohio, the of we as too direction XXXX that's she in them. into the Beth – that we project about. information landfill of firm general – provides sure of before before kind The first gas in quarter coming I those

Tate Sullivan

all. the you, a Have Thank good rest Okay. of night.

Beth Cooper

you. Thank


Please with Clear comes of Liddell from proceed Management. question. your question Roger the line with Harbor Our next Asset

Roger Liddell

as at viewed a being the difference, green terms is I is greenwashing. with period on project make discussion. I to It's wanted view If gas a Can a your that about percent that. of as But your strategic the of out commendable. defined, afternoon. some looking intake thinking what Good lay over to foresee choose? continue mean, percent? you renewable however scale gas it's obviously out is sufficient could of RNG in not Yes. what difference. company – question greenwashing you whatever supply no There the of you But is time risk real of

Jeff Householder

primarily projects, on Roger, of Delmarva the RNG get watersheds protecting and Well, especially was example, looking to but we but in in steps, back answer Ohio, as these few thing back environmental let Peninsula the end We out the initially. the really the The became of interested production environmental a of real as nice for Delmarva, was the in benefit in might as some and way. up two running the collecting also we're that that and on processing me it RNG projects, and path waste it wasn't this released being It benefit. at was imagine, Florida and of you down methane because us this a well the wasn't that drove and so not in fertilizer thought cleanup of of used waterbodies. the chicken off and that waste cumulating running RNG into

first of the states, was the first that our so interest. Delaware as And frankly it Maryland And kind was and interest.

on to an our taking and investment crass we meet the The looked criteria. facilities. that for second at the we Was it I would here, opportunity thing thing second was profit be those not looked at but guess,

announced the ultimately and receipt Shore. announced We've from in that like these projects. an any now be interconnect source. and dedicated Marlin to facility looked of will RNG LNG the at we to However, we've hauling from Right things projects gas into decided Eastern distribution Eastern invest our Shore through

also all to there to at looked into are ventures and ways profitable question those get to for so We've couple of our a system, at coming us. your And the gas that. specifically, is look distribution

in some vehicle all, attributes into fuel market. sold instances the California the are being of Fuel Low Standard of first these Now, the Carbon green of

our these getting up of up in not traditional And isn't pretty local And at of that's per not selling ending that we're distributors to for. buying creation we're a an the and the what California and paying that interesting fuel close methane fossil which so dekatherm is to production to vehicles putting is were fraced driving we that a into fuel price and and supply a fuel. it's is for in with customers gas getting And what Delmarva we thing facilities end what contemplate. pipeline you're it

answer didn't quantities the mean in distribution we around specific on barn, every is We gas to essentially system I the that that Delmarva we of customer would residential think supplies And go but to just question, so sufficient see over area that supplant time the how for production the much fuel gas our that. your traditional could again that on serve.

way. think I We'll – demand so not the then essentially be would – to frankly. and that see we that maybe but And doesn't that's the may significant that get some full – requirements of allocated a how it our equal works, accounts residential

Roger Liddell

appreciate texture interesting. future calls. the very in have Yeah, in that I'm I'll That's sure and other answer questions

Jeff Householder

Sure. Sure.


There to call time. turn are to now no further at any time. further do not questions registered at this this you. questions be will Instructions] appear back the there I [Operator Mr. Householder

Jeff Householder

Chesapeake. attending our much appreciate quarter you for very thank Well, interest third call. Okay. in always as the We

Beth team If or or are standing additional you questions, her by answer Jim to have or them. certainly myself

give a Thank much. us very you just So Good call. evening.


today. conference you your We That please ask disconnect does lines. thank conclude the your for participation that for call you and