Chesapeake Utilities (CPK)

Beth W. Cooper EVP, CFO, and Assistant Corporate Secretary
Jeff M. Householder President and CEO
James F. Moriarty EVP, General Counsel, CS, and Chief Policy and Risk Officer
Tate Sullivan Maxim Group
Brian Russo Sidoti
Michael Gaugler Janney Montgomery Scott
Call transcript
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Greetings and welcome to the Chesapeake Utilities Corporation's First Quarter Results 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 Wednesday, May 5, 2021. to President conference and like Cooper, to now Vice Executive Chief would turn over the Beth I Financial Officer. ahead. go Please

Beth W. Cooper

Thank financial results We everyone. the quarter to quarter good joining for results. and XXXX our today first review appreciate announced We yesterday. us our you you afternoon,

continued possible. our identifying you new and As we investment our employees effectively, operating projects, financial strong and saw, keeping as finalizing as safe serving indicate and results growing our customers,

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

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

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

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

turn the to I'll our Jeff? provide Company's call results. and to the key on Now, drivers contributing over first remarks performance opening Jeff to the quarter XXXX

Jeff M. Householder

our with business had call Thank you, continued We've joining our initiatives Beth. to Good growth across units. today. for thank afternoon, very all profitable strong and a you start XXXX

an over quarter increase more Gross compared share or earnings than per XXXX of increased share $X.XX. As of continuing to $XX earnings shown was quarter XX.X% from X, $X.XX first million on $X.XX, per operations XXXX. the of margin our first Slide

Our driven the by growth results company. were across

consumer consumption that normal resembled temperatures. increased more experienced weather from closely resulting also We

Gas Western projects, organic growth, Natural natural from Elkton pipeline Michael gas margin and the the included and Gas contributions propane per increased retail expansion of margins Some customer in distribution key gallon, Hurricane Services. Marlin Gas, drivers increased regulatory settlement, business

General the propane, beneficiaries of that is the initiatives has to higher. Counsel, Florida. of electricity been significant areas, delivery of As to our saying, for services gas, Jim expansion fond never natural and communities signal continued our that In Moriarty, Difficulty] of [Technical support geography. growth fortunate energy provide are our systems demand We're we all in for experiencing are service

more investment and new to driver the quarter. on by our past customers utility We projected In see that's serve approximately than continued opportunities that achieve average. primary a our to of additions target. investments X.X%. capital the year, we're Growth customer to was $XXX increased count at customer XXXX million, We in the at capital track the for first national rate twice distribution

our of capital under $X.XX growth dividend X.X% ongoing of quarter share, investment payment Our its dividends healthy dividend Company's a earnings to our for dividend its for annualized across per today, enables Utilities fund first and payout reflects aligns The XX, But to ratio our of growth, Earlier few annualized XX most supported on to investment share the $XX in X, increase. this years let shareholders turn a liquidity of XXXX, over dividend totaled has call as $X.XX our Slide our rate per growth and raise commitment projects paid Board's through reinvestment growth to quarter Directors to The that that dividend operations. million. continued including closely an about Board five-year share the five-year has initiatives have approved X.X% just by and for in capital interruption more dividend dividend increase. without add our of the minutes. first while rate me is our further December just increased results. back maintaining earnings will Chesapeake I of decision XXXX. units earnings every or ensures since growth X.X%, increase discussion per the business year growth $X.XX a Beth with shown recent annualized

Beth W. Cooper

Thanks, Jeff.

was Slide X, This in last to operations same for the net approximately million from continuing net Turning income XX%. a $XX or the quarter $X.X million of growth of million compared to income quarter year. $XX.X for represents

the some quarter of sales sure and minor XXXX. the I'm gas gains during both As first sales the exit. and There with all with associated of impacts recall, exited were business lingering natural business quarter this the marketing XXXX, you fourth XXXX on also associated the we recognized that in of

equity enterprise, income fourth today we of the of result, earlier, operating from rate quarters growth the I of $X.XX our $X.XX, while and for Company. discussion compared growth first rate continuing year, our largely a by of share by across will to impacts, operations business performance income representing and ATM net initiatives a customer last Gross the first successfully continuing continued Jeff from EPS EPS just year consumption compared last focus because and Higher issued the to Growth XX% amount by on collaboration grew, efficiencies, standardization growth to the per increased expense stock margin with increased various the under in first via and of as operations. result coupled the and income program drove was quarter while XX.X%. the the result quarter quarter significant these XX.X% XX%, of the of the XXXX XX%. $X.XX grew plans. third and As mentioned across management, is

margins our customer the gross mentioned highlights, Unregulated primarily expense share; tax. the quarter are quarter $X.XX Energy between of Energy, retail share; associated after distribution margin key Gas of quarter was $X.XX across operating added regulatory per segments, natural share lastly, business focused, Gross projects per gas growth also of share propane per the share; for last also share; operations including associated per Western Michael compared added Gas per Elkton per drivers and in fairly year Slide regulatory and $X.XX shares increases $X.XX of X from $X.XX property another two $X.XX X. split highlighted Hurricane absence quarter GRIP that added by recent margin income These year, assets; from Regulated consumption, added, Higher one per settlement gallon to, and I The earnings per and from per and Jeff the net increased Slide earnings by margin the increased from $X.XX $X.XX in increased represented referred for amortization $X.XX organic by which per acquisitions, Florida $X.XX was reflect expenses occurred Reliability As were our quarter. grew offset pipeline expansion share; and after growth depreciation $X.XX we Marlin for Infrastructure one Natural on and share; the share Program, another just the that as sales to attributes first in specific added per last weather we increased margin the first, share. contributions per higher share. the of of

equity XX our our take Given market past of to equity the months issuances position. strong opportunistic over advantage

like by per per Finally, capital share highlighting depreciation, to because in a spending payroll, XXXX. our down thus of facilities our share minutes drove earnings expenses spend $X.XX and I in far growth our the basically few would business.

new under though in can X, approximately our first $XXX with you XXXX previously to Again, As regulated concentrated the assets. as Slide new mentioned, expenditures announced capital $XX invested is of see just budgeted $XXX XX% remains Year-to-date, capital for on Jeff in investment million. forecast we've guidance investments. at million million the energy

other So, Energy some what under Pathway Distribution County; into way; project, transmission our system projects. the Del-Mar Western Florida gas and natural program; distribution Beach are GRIP Florida They Gas Eastern expansion expansion; Shore's which is XXXX Delmarva key Florida's of Palm Somerset include our County; projects? Natural well and

In growth, the we addition, capital. we RNG To and the sheet business initiatives with Gas their have their of into investments. and for natural and future priced we balance access gas strategic experienced expansion capacity sufficient support maintain strong activities, in and and capital of support technology CNG our Services we transformation to other have to electric expansion competitively fuel LNG, growth infrastructure ensure and a and transport, system Marlin our expenditures improvement systems have

was you capitalization and average comprised rate can equity, which March, X.X%. we revolver As on in had approximately debt see million under $XXX our stockholders' of XX% of of interest $X.X Slide an X.XX%; XX, total billion, of XX% long-term the fixed short-term at as $XXX rate now end million; at an average debt in of is

range. within recent equity our target equity issuance further this to along moved total capitalization Our

and future retained Utilities capitalization I and would turn our this plans $X investment, and utilize back business. the call our We extension billion. stock year reinvest now the earnings beyond approximately prospects to growth. continue about equity current to increase issue to like dividend it to equity Jeff? for and Chesapeake earnings talk Jeff our is conviction market guidance growth our of in and traditional to recent to

Jeff M. Householder

Beth. Thanks,

the remains our calls balance that is of our earlier initiatives growth. project to the of Slide reminder capital As on updated our a Beth interest. XX focus strategic and that noted, and development target. capital strength our support continues We're guidance transaction capacity earnings comfortable sheet previously very key from

energy services, continue we our provided a for As business to I by demand moment existing ago, units. noted significant the experience

our of major initiatives of Slide significant core projected our is XX. businesses. few a portion existing devoted on highlight me capital expanding to Let A investment

projects potentially in several small-scale relatively also We have transmission area. will this that increase development investment under pipeline

for to I'll on on from projects transportation, $XX expansions expected that in We're rapidly business Michael Marlin gross greater remains $X.X respectively, in represents see $XX Western XXXX, and including for generate expected RNG regulatory and XXXX moments. and And margin propane $X.X generate initiatives will in gross initiatives, are CNG, XXXX. for margin are in estimates XXXX full that the the Hurricane it margin from approximately these looking the million Services Gas. in key to approximately XXXX margin and particularly for Our showing and renewable Key acquisitions in generate of XXXX. acquisitions XXXX discuss gas $X.X margin as and with and natural again at and this $XX developing million acquisition settlement growth am Natural in table Mid-Atlantic of level to will in continues pipeline Pipeline million Southeast. $XX.X Gas Elkton the growth for respectively. pleased incremental XXXX. integration of The million margin proceeding incremental In million million the we XXXX, and million shown total, projects Slide in years $X.X key keep in market Gas detail projects million and expansion, initiatives. opportunities and grow and few the at a we I XX,

placeholder and for of take and considerable of especially days wind included reminder, a the a to and the rate we've our table realized are time adjusted projects do on unregulated anticipated develop, $X to include this reminds extent million As the not investments. customer businesses, disclosed of etc. in they Accordingly, for transportation margin a will include have projects definitive we full reach that couple RNG from our That financing. me once related projects and traditional slide growth announced. RNG maturity, project not be quarters, as project financing. new in additions, production-related only solar yet definitive of securing early RNG example, I for organic margin, the transportation These distribution, adjustments

project that several RNG more over However, we're made the among as next on there weeks. in we're is projects financial positive both involved of public the participants, interest be movement details hopeful and strategic financing and can increases

Boulden from mature $X.X As a the acquisition in and been these so ongoing this service table. became fully have in final note, removed Pipeline, million XXXX, $XXX,XXX Auburndale projects

the Over of Slide a structures initiatives. renewable we've and are ownership several gas assessing. begin, the outlines quarters, projects types of To outlined that we past natural number XX actively

progress an of Let on our initiatives. several me these provide update for

CleanBay gas continue the facilities We with our Investment XXXX We processing to waste, hope project. in anticipated investment option Committee Westover Delmarva on with own CleanBay finalize on negotiate existing the to renewables other Board to at production and and Last governance Peninsula. facility, to over work RNG, equipment Maryland and plant. that We organic the poultry the described the fertilizer viable. equity with participation two with our utility month, providers weeks, QX CleanBay and with equity scale previously coming date convert equity in to economic the with terms an management to in-service CleanBay an the equipment agreement Chesapeake's remains authorized agreement total project the ensure of

Westover investors is Sussex Sussex The on facility, plant the Westover the under the RNG a development approved. RNG and which to Delmarva the facility be to have Sussex among Delaware. County, plant, the facility, we're second utility other potential In for and fertilizer. largest in permits produce will the use acquired addition property in and Similar in CleanBay at scale discussions RNG with along will land with a Westover organic has Upon most Sussex been been completion, RNG country. facilities plants the

plant. agreement interconnect may and in with the conjunction investments final under been recall, several scheduled the in Westover Marlin additional Transport Natural or Westover of in-service construction Eastern our pipeline we have you with plant. Shore transmission with place, As negotiations either associated date agreement The in contract finalized, an interconnect for the Gas Gas the is is has

Gas agreement purchase distribution, excuse to customers. from has Delmarva me, our finalized molecules [ph] Blue to non-fossil Our -- business non-frac, RNG for RNG the for distributions off-take to of Westover our distribution an

also the to operations It's supply addition our similar Sussex to needs Eastern continue driving mile proximity with likely battery Westover to site. pipelines for to RNG Bioenergy distribution facility. design County our permit. engaged and the close production, distribution system Delmarva provide a customer. in gas RNG at in and lot the our expansion facilities. has will move will Sussex will use forward lot solar poultry Maryland to owned micro-grids is CleanBay Southern's Energy plant, the electric with Commission site, to engineering distribution systems, provide of protection a On Delmarva, is Company from of for support expansion at related various Services respectively third to Pathway by of the service. PV on Chesapeake the contractor, Sussex Chesapeake a project processor We're ordered DevCo site. to and to by preliminary and development the conventional Gas The the the anticipate site. protocols RNG Del-Mar DevCo of renewable work will assist currently facility solar own suitable are Bioenergy extend and electric will We services [indiscernible], on at each photovoltaic Westover develop PV within from in of support conventional to plants, to and plant waste of facilities exploring storage, approved Westover under an they micro-grid sites. our PowerSecure solar Property the in we providing Sussex by party fertilizer as produced service In to Chesapeake X.X electric has similarly land the Westover a Chesapeake Energy Company bring Southern generation operate Westover's and systems the in gas Westover renewable installation party largest EPC purchasing the organic develop RNG both Natural The conditional County, become and components. system plant. the Shore serve Company of close distribution opportunities to the third we and working and fertilizer potentially Delaware. We've natural the construction gas. equipment the distribution process gas design other the the and retained related gas finalizing Marlin processing to recently

our CNG Savannah a higher. Georgia-based in serve East approximately will firms We've service. CNG representatives at fueling to renewable continues develop the the along $XX opportunities XXXX public facility of to on the held facility project production with trucking recently even October and anticipated proceed be Coast, meeting interest the gas Construction several marketers working was capacity several natural million, where Our in with with is day. on at and estimated fuel facility an of that investment Savannah approximately XXX on in-service late CNG fueling CNG the interest The XXXX. for semi-trucks Marlin in large to station in vehicle high per potential schedule of in We're RNG regional exploring to providing staging with compressed station. was

than capture system the earlier and pipelines integrity service an significant just has pipeline buses remove The were work. on transfer then array methane point to at an of enabled need place. capacity gas put provides maintenance first delivered the Marlin deployment to its taken Service Marlin a we're up to provide eight-month to diesel offer diesel the anticipated a customers reintroduced our or system. Marlin fueling the Rather it Marlin, quantities. and we line wrapping reduction a methane emissions. from July. four that in gas to at has fuel of Miami Marlin its before tractor utilities continuing than service to At buses the pipeline conversion serve and fueling of services enables early Eight compress CNG new CNG unit. bus also increased of to fleet and City almost larger four-stage will of cabs XXX of permanent the peak, to in were we're The in gas of atmosphere, facilities fleet. LNG transport can delivery an releasing CNG it compressor new transit into finally, also tankers. taken pipeline on natural for segment pressures, day any CNG delivery compressor a Speaking to Marlin compressed expanded The CNG the can delivery requiring be LNG pressure, gas. Marlin receive tanker. be another And

test turbine Solar effects in Flags working our proposed impact, our by CHP just operations to the and measurement, hydrogen note better Amelia continue availability, we turn on pipeline a Island We've Moriarty, also on at identify beginning research supporting hydrogen into fourth the hydrogen of with Jim at Department Turbines. several use were project understanding equipment. Energy our Eight as we facilities. blends that blends their from introducing offered the several customers consider gaining quarter to safety systems. call industrial downstream mentioned to opportunities of a call last a and to the I We're a to we're opportunities pursue As a of our existing site of for hydrogen customer I before stages

of the call our discuss social, sustainability, Let our commitment to culture. further to governance me Jim turn environmental, Moriarty corporate and strategy, to part over and

James F. Moriarty

Good Jeff. by like today. on begin an legislative afternoon, is you, to I Thank in providing update you certain everyone. with to great be would It actions Florida.

Slide resilient is Energy Bill consumer gas as shown will on ongoing the meet As availability an demand. of affordable, natural Pre-Emption and XX, increasing energy resource. Natural the available and maintains customer reliable, choice legislation be key gas that and ensures use to

also gas. we under join The Energy cleared rates Florida nation. When meeting Bill, signed defines addition, in and and PSC recovery of Legislature In that before authorizes that market Governor, needs the sponsored It natural contracts Florida signature. renewable other will a chambers both to by RNG states for energy injection into a certain the dozen and in role has This natural distribution supports vibrant generation, Bill the this of the which of exceed RNG's the gas approve Bill is for gas endorsed Renewable cost Governor transportation, electric use growing conditions. biogas the have systems.

customer and and ensure to such regards of working stages apprised foremost, also gas available activities. of you demand the of supporting and via for to jurisdictions, and renewable to provide the first We in of state. legislation driving the throughout our natural viable are gas governmental future similar natural mechanism State within portfolio on for to in team a at We're keep various legislation natural our other part we'll gas important Florida affairs meet proud is

continues build stewardship, As environmental Chesapeake commitment on social and to shown dedication on Utilities Slide to a XX, justice, governance our bedrock principles. ESG, to on focus sound

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

Board have stockholders as Company, ahead. have results road Directors be our committees and the framework this demonstrates presented other engagement, beginning people, which were Strong guidelines Board provided more to of the voted corporate vote results, we proposals Active and our XX% of chart and extending them. shares ongoing performance and informed that stockholders' the is Our of not of future annually. monitoring for governance. the throughout Based in policies the strong with in its governance also before favor effective and important includes continue continuing embedded Company could and year's together listening adopted on a over of our our the the This to support strategy. our

and and responsibility in operate stewardship Our to safe sustainable facilitates practices across environmentally friendly manner a furthers our our organization.

team, and the ERM Our mitigating from Directors, emerging key Risk part areas risks. Embedded Enterprise Management of our Board program. within as and focus identified program, discusses factors risks ESG-related our input with our comprehensive of

to we to an making to the performance Slide priority our is not a The only the regards strategic communities both customers, safe the providing priority the strategic our and it and initiative, short-term in our and of objective, XX, we is safety interactions who of term. safety in to serve. first center superior achievement each and is committed in at workplace other, important are Safety top with long our we a safety employees are. for Turning

training of regard town in completion of classroom latest provide and technicians. hands-on safety our operations our Delaware both facility One to this Dover, in our for accomplishments is the

made be There, will additional during on We Sustainability which on insights our be we also ESG are XXXX. and information long-standing Responsibility providing working Corporate stewardship. inaugural report, and available will diligently our

commitment sharing environment backgrounds Council embracing improve serve and to providing on and Equity, their experiences, committed employees help diversity skillset supports highlighted that communities as background, our the to Bedrock all values and and and we us workplace Council central driving make culture that collaboration the are better to will further we is who resource the of want We our EDI who experiences work mission of five Council equity, and rollout diversity is Company, Diversity we with Inclusion, inclusion, and a to throughout are around XX. XX. employee shown all in continuing to engine be, diverse we our our busy XXXX, groups company. the Slide and the as or The on The was a to employees, in the EDI our our extremely EDI enhance business. fostering In Slide

channels about in We well the have to time these what the short to ideas that amount been inspiring one forward services, We are by that and supported role day delivery work excited serve increasing clean, teams for look continue and The energy employees forefront skills plentiful, done and also Company. creation feel receiving just of ensure the no that every and ERGs. the groups our of affordable, these as so to communities have other a brought value inclusive we have their talent, as and of left is hard resilient and to provide benefits behind. the

internal actions our pipeline gas stations. completion improved reduce compressor detection program including undertake emissions, continue We greenhouse to technology at to of replacement and our various

suppliers with their We our and are contractors environmental also encourage to working efforts.

assistance footprint large for identify to engaged the that customers the programs excited reduce to also reduction volume are projects communities and carbon opportunities. we by conservation serve, under about our and including the technical teams We promote emission way efficiency high of appliances diverse

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

future very communities. closing I ensure footprint and local are Our ensuring comments. of we RNG announced being for all clear appreciate lowering Jeff projects the sustainable in beginning. the best and call a also today, to They do example the turn our are the just back our now carbon to you a some more for with of we'll

Jeff M. Householder

Jim. Thanks,

While by of positive and our dividend key we're with growth, initiatives, our very XXXX growth. as financial earnings-per-share year beginning projects indicated fiscal capital and investments, performance,

significant our gives our XX, five-year our for of of guidance. that of guidance growth XX latest XXXX on update opportunities confidence period can That As high enabled in us to ahead capital excited affirming plan I'm has and to the $X strategic and you million Slides at see opportunities capital expand that confidence $XXX investment a XXXX we billion. extend us degree to our have us. we're

XX% the XXXX gas share $X.XX guidance per at average represents our end initiation approximately strategy. growth an We energy range from EPS is of natural country's guidance component the XXXX. key Our of of a long-term of EPS believe $X.XX to to

regard. the also we on We markets loudly the or services time, natural deliver; compound annual new including our one, in for have energy a toward sustainable customers we which that believe our exceeded spoken mix and have renewable given shareholder through electricity, focused has expertise growth advance propane whether us value energy performance, quartile to opportunities strategic XX the XX XX, April period, to each gas or serve this business At same XXXX. we approach We're XX% that future. more committed and opportunities our three, strategy, years growth top five, return on delivering capitalize

on investment Our XX. and commitment based proposition outlined performance we to a that is Slide superior upon

objectives we questions our a strategies financial commitment dedicated pursue we of achieving safe delivery now initiatives In and to closing, level and solutions Utilities' address targets, our in any of support front as in Chesapeake of of as are take employees. moment our our want I and performance. We all well the foundation, to Our to this the Thank thank you. ongoing energy can lines the may reliable have. And and delivering pride the work to you identifying clean, on customers. great and for innovative done take


go the comes from Please the question, line Maxim Group. One first ahead. please Thank which moment Sullivan you. of with [Operator for Instructions]. Tate

Tate Sullivan

Hi, thank you. Starting please. on CleanBay,

equity option of that the is Chesapeake, -- the convert investment this in something participation, type or done mentioned projects before? equity you've equity-type that history new of participation to equity unregulated of to other You in an

Beth W. Cooper

and new you afternoon, could this from done in we that something good It Tate. past. be Thank standpoint. No, the Chesapeake not historically something is

Tate Sullivan

approved just that potential the Thank convert that that is you equity? by mentioned, place, to just in you. or Okay. a was is it already to And Board or

Jeff M. Householder

Tate, got infusion approval us we making negotiation a and if an the we pursue that see into project. governance feel what to comfortable structure CleanBay to equity to can basically Well, would enable economic with was terms

We gas size at assumed have a that the ability would to be do would looking as similar unit. put of we processor. equity the we we're into the what processing The

Tate Sullivan

with in margin, noted tankers, you. side I Thank something on Energy, I you Okay. well, operating you know that or LNG the was look please? else that investments some partly margin, slightly sector, the was just with at out the Unregulated the Sticking year-over-year impacts as can down gross and call would it mean, capital margin from I

Beth W. Cooper

Would you for you the as the margin when well in margin. Tate, the just an the because actually mind, both were income your quarter as from at up, businesses look question repeating operating unregulated

question could -- So, would mind you your just you repeating there.

Tate Sullivan

check XX% I'll No, margin operating the was -- Okay. slightly the down my calc from prior thought year. I

customer there, on Okay. sorry, I'll Elkton, if can growth in I And seen recheck comment organic you in put then, you growth, it did Elkton slides, recently? that. Delmarva, you've excluding missed organic in excluding the that that

Beth W. Cooper


in seeing strong, but foreseeable still looks to strong, significantly movement is last what and in for total, strong still it's the organic rate be from the to little a to coming average very future. the remains very growth So, relative had the both pickup the and of actually growth that's In -- a double, We margin residential for on first We're appears any run territories. what terms the of very year. of continues quarter-over-quarter. margin did the same close where customer to to in more quarter see it our slowing bit industry very was total we've the a be and relative classes, Florida, service not than there, among

Tate Sullivan


you Okay. the for Thank That's me. it for detail.

Beth W. Cooper

Thank you, Tate.


from of comes question next Sidoti. Your ahead. Russo Brian the Please go with line

Brian Russo

Yeah. Hi, good afternoon.

Beth W. Cooper

Good How afternoon. you? are

Brian Russo

Good. Thank you.

you if and And So, follow-up Chesapeake something kind you on near that? be just that to to fourth term XXXX equity quarter from recall in CleanBay of to investment, be that expect I investment, contribution you'd the that is is quantify accurate? correctly, to that mentioned able the finalized

Jeff M. Householder

and to conclusion about what some the really middle like. can and out that project now, facility. in we it actual in economics provisions opposed to equity It's the of And piece just to gas infusion the ownership looks then the accurate be, trying if right negotiations what will that's an that the to the whole what figure one extent exactly decide into we're and support complete come processing as governance of those of

Brian Russo

be, And have increased Difficulty] like the is margins? will box? my of growth the Understood. within guys you to propane propane Difficulty] looks propane the driver gross to where Okay. driving what's as margins, first see and then I margin question [Technical on it just probably quarter tend operations of [Technical unregulated next those the three the a kind which XXXX unregulated And then two-thirds [Technical quarter nice you were drivers, customer driver, Difficulty] the

Beth W. Cooper

things there, of in a Brian. your terms So, couple questions of

So, there continues to in operations. be customer the growth propane

several in that in know You continuing start-ups those so that and to and grow. with then expand for to to able the and time the do been continue Virginia, what done we've with continue out build and acquisition several we done also Boulden as example, we've area over of Pennsylvania they to different start-ups

So, ongoing growth well. operations there in is those as

piece there that becomes But attributable You'll the out as somewhat -- of there be it is don't in see consumption that's those rather the the propane to positives. negatives at tend We million is in be piece the $X.X art, out and also is it's it's propane netted growth some to a in can be as no That's amount what little that can bit and you with on regulated may in may a sitting the there look to when little side, some break can that consumption well. a then try specifically weather, it there defined. other break the there to than there variances, not that be business an -- in bit it -- growth some be that science business. difficult be whether can but

Brian Russo

Gas last the businesses, had was Service Florida or to elsewhere. grow Okay, quarter, update strategy think, maybe there And curious territory on Natural if in great. a was you think Western you the I propane any there? near the I I just mentioned

Jeff M. Householder

Southeast. in interested the and business always in are growing propane we Mid-Atlantic Well, the

the that always opportunities, way interested acquisition so describing in looking organically we're in also a but Beth we're potential business for growing And much the just ago. was second

customer continuing auto And gas an forward. we acquisition And or see so we're of that then if here opportunities, that our enhance the growth that. that all to certainly there, opportunities whether with can in is move we or doing interested

Brian Russo

it maybe through pipeline that FX should some -- of lastly, incremental RNG exciting the etc. partnerships, have new is you in that [ph] with or then we like investment any partners existing in a even just forecast assume captured And XXXX? Okay. lot seems projects like

Beth W. Cooper

-- will will occurring, is about of going XX% the in pretty There we relates what going We do and we is that a amount significant but capital to typically in concretely talked about be that's higher. capital amount in estimates strong has amount, of what to feel we've that our try can as that typically that have or small and see happen. very probability to be projects past a include below of estimate to may that's they're feel the we that we

a some that. So, a has of probability If time could it will a of to whether that they that they could undertake were, high portion, talked the then these Jeff were enough. from not included, them portion at Brian, opportunities outside are or potential be about, be perspective the there but of be sitting

that a level continue And there the that about. is so, from to we move, very in to for opportunity base but feel there been strongly an investments is that's factored range

Jeff M. Householder

to that quite had of preponderance with comfortable capital we add the $X we currently investment the guidance that forecast billion, million provided we existing own. we businesses that In the that. associated were would that I $XXX to

not to especially were R&D we not incremental that bottom was any so, of to dependent the And of we're get on range, the heavily depending facilities pursuing. that

Brian Russo

Okay. you much. Understood. very Thank

Beth W. Cooper

you. Thank


of next Janney Your Scott. ahead. Please Gaugler the Montgomery question go Michael with from comes line

Michael Gaugler

Good afternoon, everyone.

Beth W. Cooper

afternoon. Good

Michael Gaugler

Two questions.

Georgia XX, networks RNG, your distribution using those states? from you see and transport Slide Would for investment. First areas on as be to targeted I Virginia

Jeff M. Householder

truck one probably we wanted by a we move Well, if into economically would system, to to probably what in green system. a Marlin green the the would be by California or displacement. do doing or we that gas getting Delaware, a it potentially pipeline wherever, into is we developed of Much York And if developed advantageous New it into pipeline distribution collects distribution transporting nearby either that found build same RNG transmission by way our facilities, attribute attributes market. in and that of the California

chose that So we if can that in do I think, we to. manner

Michael Gaugler

like account Florida, very place Florida Bill a for And that's Pre-Emption Energy focus future the is that pipelines for these more Okay. a into in pipeline taking we friendly seems Should then days. assume of opportunities?

Jeff M. Householder

are engaged that you -- yeah, can is and I Florida. Michael, expand And our a friendly there we assume and I you're for build Peninsula as the a down to all of you operation. the our pipeline with time. And looking over especially Well, think mean, are actively presence to I we pipeline right, years, environment, opportunities those know, number we in it pipe trying there think found

Michael Gaugler

of perhaps the a the get in that represent Florida the years. greener put landscape lot Yeah. changing might moment capital The know got is, up Mid-Atlantic the reason assets to say, lot a to at and than kind of the of Northeast. But a or feel I things, trying you thinking and pastures through you've the for pipeline work just Delmarva, question for of a

Jeff M. Householder

say. I a environment It's fair business think that's just not favorable to issue.

Delmarva to a As Peninsula. money you of work on lot the say, we've put

earlier, looking demand capacity on And as And position continuing relative grow, to interested with the But pull that are electric certainly significant the now the growth, said typical this transmission We're remaining we're so demand might a be, in an came as opportunity in there or our pipe those at at Beth Delmarva. on extent increases. residential on in we've from inherent business. after the commercial industrial whatever to mentioned relatively pretty in pipeline pursuing to and is anyone with it opportunities I projects it's an and generation small, some good those that facility that, got or substantial, be new point. although volumes we the growth would without

James F. Moriarty

first thing And example is most the Somerset the environment both project only opposition, County that the is some I time in and the that's expanded Mike, and it and a Maryland add, recent that supporting political, And in we've the would communities, of strong very got where service economic. done unanimously. was we had that Maryland, others. was that over for from it and The into Governor our Delaware, Somerset the we was

well. strong So, we have Delmarva as very support on the

Jeff M. Householder

seen I on to yet expanding Peninsula. pipe. not growth significant mean, think continues. the it will as I remains I be Delmarva come we're to mean, opportunities finished there the And be

Michael Gaugler


growth your there. I time. Appreciate to of it. seem You a lot have see you. Thank

Jeff M. Householder

Thank you.

James F. Moriarty

Thank you, Michael.

Beth W. Cooper

Michael. you, Thank


at There continue to this will now questions time. further back are Instructions]. with [Operator turn call closing the no the presentation you. Please I and/or remarks.

Jeff M. Householder

report. you earnings this of with a for was us afternoon of these of all I'm this appreciate of We sure thanks. Well, call. several you, our quarter for end connecting long first day the

of as always, to information feel is we us. can you there if that thank much. additional out to any provide, very one So, reach And free Thank please you. Goodbye.


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