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Chesapeake Utilities Corporation Reports Third Quarter 2018 Results
For the nine months ended
"Our strong, disciplined capital investment strategy continues to expand the safe, clean, reliable energy services we provide to our customers and produce quarterly and year-to-date earnings growth in our Regulated Energy segment and year-to-date earnings growth in our Unregulated Energy segment's propane operations and natural gas supply services," stated
Significant Items Impacting Earnings
Results for the three and nine months ended September 30, 2018 were impacted by the following significant items:
For the period ended September 30, |
Third quarter |
Year-to-date |
|||||||||||||
Net Income |
EPS |
Net Income |
EPS |
||||||||||||
(in thousands, except per share data) |
|||||||||||||||
Reported (GAAP) Earnings |
$ |
5,538 |
$ |
0.34 |
$ |
38,779 |
$ |
2.36 |
|||||||
Less: Realized Mark-to-Market ("MTM") gain |
— |
— |
(4,008) |
(0.24) |
|||||||||||
Add: Non-recurring separation expenses associated with |
— |
— |
1,421 |
0.09 |
|||||||||||
Adjusted (Non-GAAP) Earnings* |
$ |
5,538 |
$ |
0.34 |
$ |
36,192 |
$ |
2.21 |
Excluding both the one-time separation expenses for a former executive and the realized MTM gain recorded by the Company's natural gas marketing subsidiary, PESCO, during the first quarter, which offsets a comparable MTM loss in the fourth quarter of 2017, EPS for the nine months ended September 30, 2018 would have been
*This press release includes references to non-Generally Accepted Accounting Principles ("GAAP") financial measures, including gross margin, adjusted earnings and Adjusted EPS. A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future performance that includes or excludes amounts, or that is subject to adjustments, so as to be different from the most directly comparable measure calculated or presented in accordance with GAAP. Our management believes certain non-GAAP financial measures, when considered together with GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period.
The Company calculates "gross margin" by deducting the cost of sales from operating revenue. Cost of sales includes the purchased fuel cost for natural gas, electricity and propane, and the cost of labor spent on direct revenue-producing activities and excludes depreciation, amortization and accretion. Other companies may calculate gross margin in a different manner. Gross margin should not be considered an alternative to operating income or net income, both of which are determined in accordance with GAAP. The Company believes that gross margin, although a non-GAAP measure, is useful and meaningful to investors as a basis for making investment decisions. It provides investors with information that demonstrates the profitability achieved by the Company under its allowed rates for regulated operations and under its competitive pricing structures for unregulated businesses. The Company's management uses gross margin in measuring its business units' performance. This press release also includes gross margin that excludes the impact of unusual items, such as the pass-through to customers of lower federal income taxes resulting from TCJA. The Company calculates "adjusted earnings" by adjusting reported (GAAP) earnings to exclude the impact of certain significant non-cash items, including the impact of realized MTM gains (losses) and one-time charges, such as severance charges, and calculates "adjusted EPS" by dividing adjusted earnings by the weighted average common shares outstanding.
Operating Results for the Quarters Ended September 30, 2018 and 2017
Consolidated Results
Three Months Ended |
||||||||||||||
(in thousands) |
2018 |
2017 |
Change |
Percent |
||||||||||
Gross margin before the TCJA impact |
$ |
65,111 |
$ |
60,076 |
$ |
5,035 |
8.4 |
% |
||||||
Pass-through of lower taxes to regulated energy
|
(1,993) |
— |
(1,993) |
N/A |
||||||||||
Gross margin |
63,118 |
60,076 |
3,042 |
5.1 |
% |
|||||||||
Depreciation, amortization and property taxes |
14,702 |
13,181 |
1,521 |
11.5 |
% |
|||||||||
Other operating expenses |
36,380 |
32,263 |
4,117 |
12.8 |
% |
|||||||||
Operating income |
$ |
12,036 |
$ |
14,632 |
$ |
(2,596) |
(17.7) |
% |
Operating income during the third quarter of 2018 decreased by
Regulated Energy Segment
Three Months Ended |
||||||||||||||
(in thousands) |
2018 |
2017 |
Change |
Percent |
||||||||||
Gross margin before the TCJA impact |
$ |
53,262 |
$ |
46,909 |
$ |
6,353 |
13.5 |
% |
||||||
Pass-through of lower taxes to regulated energy customers |
(1,993) |
— |
(1,993) |
N/A |
||||||||||
Gross margin |
51,269 |
46,909 |
4,360 |
9.3 |
% |
|||||||||
Depreciation, amortization and property taxes |
12,085 |
10,782 |
1,303 |
12.1 |
% |
|||||||||
Other operating expenses |
23,269 |
20,604 |
2,665 |
12.9 |
% |
|||||||||
Operating income |
$ |
15,915 |
$ |
15,523 |
$ |
392 |
2.5 |
% |
Operating income for the Regulated Energy segment increased by
The key components of the increase in gross margin are shown below:
(in thousands) |
Margin Impact |
||
Eastern Shore and Peninsula Pipeline service expansions |
$ |
3,616 |
|
Implementation of Eastern Shore settled rates |
1,161 |
||
Natural gas growth (including customer and consumption growth, but excluding service expansions) |
734 |
||
Florida electric reliability/modernization program |
464 |
||
Gas Reliability and Infrastructure Program ("GRIP") in Florida |
329 |
||
Other |
49 |
||
Total |
6,353 |
||
Less: Pass-through to regulated energy customers of lower taxes resulting from TCJA* |
(1,993) |
||
Quarter over quarter increase in gross margin |
$ |
4,360 |
|
*As a result of the TCJA and ensuing directives by federal and state regulatory commissions, the Company reserved or refunded to customers of its regulated businesses an estimated $2.0 million during the third quarter of 2018. In some jurisdictions, refunds have been made to customers, while in other jurisdictions, the Company has established reserves until final agreements are approved and permanent changes are made to customer rates. The reserves and lower customer rates are equal to the estimated reduction in federal income taxes due to the TCJA and have no material impact on after-tax earnings from the Regulated Energy segment. |
The major components of the increase in other operating expenses are as follows:
(in thousands) |
Other Operating Expenses |
||
Outside services, facilities and maintenance costs to maintain system integrity and support growth
|
$ |
1,195 |
|
Depreciation, amortization and property taxes associated with recent capital projects |
1,303 |
||
Benefits and other employee-related expenses(1) |
530 |
||
Payroll expense (increased staffing and annual salary increases) |
446 |
||
Early termination of facility lease due to consolidation of operations facilities |
323 |
||
Other |
171 |
||
Quarter over quarter increase in other operating expenses |
$ |
3,968 |
|
(1) Since the Company self-insures for healthcare costs, benefits costs fluctuate depending upon filed claims. |
As previously disclosed, the Company expects the current expense run rate to continue for the remainder of the year, with the exception of the early lease termination. This expense reflects the payment of all remaining costs for one of the Company's former operations facilities, which has been replaced by the new Energy Lane Service Center, which opened during the third quarter of 2018.
Unregulated Energy Segment
Three Months Ended |
||||||||||||||
(in thousands) |
2018 |
2017 |
Change |
Percent |
||||||||||
Gross margin |
$ |
11,933 |
$ |
13,272 |
$ |
(1,339) |
(10.1) |
% |
||||||
Depreciation, amortization and property taxes |
2,578 |
2,360 |
218 |
9.2 |
% |
|||||||||
Other operating expenses |
13,288 |
11,863 |
1,425 |
12.0 |
% |
|||||||||
Operating income |
$ |
(3,933) |
$ |
(951) |
$ |
(2,982) |
(313.6) |
% |
Given the imbalance adjustments in the third quarter of 2018 and the increased infrastructure built for PESCO to support its growth and to ensure continued risk management, the Company is presenting PESCO's results separate from the rest of its Unregulated Energy segment:
(in thousands) |
Unregulated Segment excluding PESCO |
|||||||||||||
Three Months Ended September 30, |
2018 |
2017 |
Change |
Percent |
||||||||||
Gross margin |
$ |
11,202 |
$ |
11,912 |
$ |
(710) |
(6.0) |
% |
||||||
Depreciation, amortization and property taxes |
2,424 |
2,281 |
143 |
6.3 |
% |
|||||||||
Other operating expenses |
11,567 |
10,519 |
1,048 |
10.0 |
% |
|||||||||
Operating loss |
$ |
(2,789) |
$ |
(888) |
$ |
(1,901) |
(214.1) |
% |
Excluding PESCO, operating loss for the Unregulated Energy segment increased by
The major components of the decrease in gross margin (excluding PESCO results) are shown below:
(in thousands) |
Margin Impact |
||
Propane retail operations - decreased margins driven by lower prices per gallon |
$ |
(469) |
|
Unregulated Energy customer consumption decrease |
(374) |
||
Other |
133 |
||
Quarter over quarter decrease in gross margin |
$ |
(710) |
Operating expenses were higher because of additional personnel, systems and outside services to support growth in these businesses, as well as higher incentive compensation associated with accruals for the year-to-date performance.
The major components of the increase in other operating expenses are as follows:
(in thousands) |
Other Operating Expenses |
||
Payroll expense (increased staffing and annual salary increases) |
$ |
308 |
|
Outside services to support growth and facilities and maintenance costs as a result of ongoing compliance activities |
275 |
||
Benefits and other employee-related expenses(1) |
228 |
||
Incentive compensation costs (based on period-over-period results) |
176 |
||
Depreciation, amortization and property tax costs due to new capital investments |
144 |
||
Other |
60 |
||
Quarter over quarter increase in other operating expenses |
$ |
1,191 |
|
(1) Since the Company self-insures for healthcare costs, benefits costs fluctuate depending upon filed claims. |
Many of the increased expenses highlighted above are fixed and; since third quarter margins are typically lower due to the seasonal nature of the Company's businesses, the increases have a more significant impact on quarterly operating losses. The Company expects the current expense run rate to continue for the remainder of the year.
PESCO results
Three Months Ended |
||||||||||||||
(in thousands) |
2018 |
2017 |
Change |
Percent |
||||||||||
Gross margin |
$ |
731 |
$ |
1,360 |
$ |
(629) |
(46.3) |
% |
||||||
Depreciation, amortization and property taxes |
154 |
79 |
75 |
94.9 |
% |
|||||||||
Other operating expenses |
1,721 |
1,344 |
377 |
28.1 |
% |
|||||||||
Operating loss |
$ |
(1,144) |
$ |
(63) |
$ |
(1,081) |
(1,715.9) |
% |
For the three months ended September 30, 2018, PESCO's gross margin was lower by
Operating Results for the Nine Months Ended September 30, 2018 and 2017
Consolidated Results
Nine Months Ended |
||||||||||||||
(in thousands) |
2018 |
2017 |
Change |
Percent |
||||||||||
Gross margin before the TCJA impact |
$ |
229,208 |
$ |
204,649 |
$ |
24,559 |
12.0 |
% |
||||||
Pass-through of lower taxes to regulated energy customers |
(7,530) |
— |
(7,530) |
N/A |
||||||||||
Gross margin |
221,678 |
204,649 |
17,029 |
8.3 |
% |
|||||||||
Depreciation, amortization and property taxes |
42,149 |
38,416 |
3,733 |
9.7 |
% |
|||||||||
Non-recurring executive separation expenses |
1,548 |
— |
1,548 |
N/A |
||||||||||
Other operating expenses |
112,291 |
102,441 |
9,850 |
9.6 |
% |
|||||||||
Operating income |
$ |
65,690 |
$ |
63,792 |
$ |
1,898 |
3.0 |
% |
Operating income, for the nine months ended September 30, 2018, increased by
Regulated Energy Segment
Nine Months Ended |
||||||||||||||
(in thousands) |
2018 |
2017 |
Change |
Percent |
||||||||||
Gross margin before the TCJA impact |
$ |
170,456 |
$ |
151,147 |
$ |
19,309 |
12.8 |
% |
||||||
Pass-through of lower taxes to regulated energy customers |
(7,530) |
— |
(7,530) |
N/A |
||||||||||
Gross margin |
162,926 |
151,147 |
11,779 |
7.8 |
% |
|||||||||
Depreciation, amortization and property taxes |
34,402 |
31,411 |
2,991 |
9.5 |
% |
|||||||||
Other operating expenses |
71,594 |
66,732 |
4,862 |
7.3 |
% |
|||||||||
Operating income |
$ |
56,930 |
$ |
53,004 |
$ |
3,926 |
7.4 |
% |
Operating income for the Regulated Energy segment increased by
The key components of the increase in gross margin are shown below:
(in thousands) |
Margin Impact |
||
Implementation of Eastern Shore settled rates |
$ |
6,256 |
|
Eastern Shore and Peninsula Pipeline service expansions |
5,966 |
||
Natural gas growth (including customer and consumption growth but excluding service |
4,098 |
||
Return to more normal weather |
1,498 |
||
Florida electric reliability/modernization program |
1,231 |
||
Florida GRIP |
931 |
||
Other |
(671) |
||
Total |
19,309 |
||
Less: Pass-through of lower taxes to regulated energy customers* |
(7,530) |
||
Period-over-period increase in gross margin |
$ |
11,779 |
|
*As a result of the TCJA and ensuing directives by federal and state regulatory commissions, the Company reserved or refunded to customers of its regulated businesses an estimated $7.5 million during the first nine months of 2018. In some jurisdictions, refunds have been made to customers, while in other jurisdictions, the Company has established reserves until agreements are approved and permanent changes are made to customer rates. The reserves and lower customer rates are equal to the estimated reduction in federal income taxes due to the TCJA and have no material impact on after-tax earnings from the Regulated Energy segment. |
The major components of the increase in other operating expenses are as follows:
(in thousands) |
Other Operating Expenses |
||
Depreciation, amortization and property taxes associated with recent capital projects |
$ |
2,991 |
|
Payroll expense (increased staffing and annual salary increases) |
1,857 |
||
Facilities and maintenance costs to maintain system integrity |
1,507 |
||
Regulatory expenses
|
(536) |
||
Incentive compensation costs (based on period-over-period results) |
401 |
||
Other operating expenses including vehicle, credit collections, other taxes, sales and advertising costs |
356 |
||
Early termination of facility lease due to consolidation of operations facilities |
323 |
||
Benefits and other employee-related expenses(1) |
307 |
||
Other |
647 |
||
Period-over-period increase in other operating expenses |
$ |
7,853 |
|
(1) Since the Company self-insures for healthcare costs, benefits costs fluctuate depending upon filed claims. |
Unregulated Energy Segment
Nine Months Ended |
||||||||||||||
(in thousands) |
2018 |
2017 |
Change |
Percent |
||||||||||
Gross margin |
$ |
59,149 |
$ |
53,827 |
$ |
5,322 |
9.9 |
% |
||||||
Depreciation, amortization and property taxes |
7,637 |
6,884 |
753 |
10.9 |
% |
|||||||||
Other operating expenses |
41,271 |
36,317 |
4,954 |
13.6 |
% |
|||||||||
Operating income |
$ |
10,241 |
$ |
10,626 |
$ |
(385) |
(3.6) |
% |
Given the impact of the MTM gain recorded by PESCO in the first quarter of 2018 and the increased infrastructure the Company has built for PESCO to support its growth and to ensure appropriate risk management, the Company is also presenting PESCO's year-to-date results separate from the rest of its Unregulated Energy segment:
(in thousands) |
Unregulated Segment excluding PESCO |
|||||||||||||
Nine Months Ended September 30, |
2018 |
2017 |
Change |
Percent |
||||||||||
Gross margin |
$ |
54,637 |
$ |
48,078 |
$ |
6,559 |
13.6 |
% |
||||||
Depreciation, amortization and property taxes |
7,181 |
6,773 |
408 |
6.0 |
% |
|||||||||
Other operating expenses |
35,995 |
32,862 |
3,133 |
9.5 |
% |
|||||||||
Operating income |
$ |
11,461 |
$ |
8,443 |
$ |
3,018 |
35.7 |
% |
Excluding PESCO, operating income for the Unregulated Energy segment increased by
The major components of the increase in gross margin (excluding PESCO results) are shown below:
(in thousands) |
Margin Impact |
||
Propane delivery operations - additional customer consumption - (weather) |
$ |
2,923 |
|
Propane delivery operations - increased margin driven by growth and other factors |
1,552 |
||
Aspire Energy - customer consumption - (weather) |
921 |
||
Aspire Energy - increased margin driven by growth and other factors |
592 |
||
Growth in wholesale propane margins and sales |
255 |
||
Other |
316 |
||
Period-over-period increase in gross margin |
$ |
6,559 |
The key components of the increase in other operating expenses (excluding PESCO expenses) are as follows:
(in thousands) |
Other |
||
Payroll expense (increased staffing and annual salary increases) |
$ |
1,430 |
|
Absence of Xeron Inc. ("Xeron") 2017 wind-down costs |
(829) |
||
Facilities and maintenance costs as a result of ongoing compliance activities |
706 |
||
Other operating expenses including vehicle, credit collections, other taxes, sales and advertising |
654 |
||
Incentive compensation costs (based on period-over-period results) |
645 |
||
Benefits and employee-related costs(1) |
442 |
||
Depreciation, amortization and property taxes associated with recent capital investments |
410 |
||
Other |
(325) |
||
Period over period increase in other operating expenses |
$ |
3,133 |
|
(1) Since the Company self-insures for healthcare costs, benefits costs fluctuate depending upon filed claims |
PESCO results
(in thousands) |
PESCO |
|||||||||||||
Nine Months Ended September 30, |
2018 |
2017 |
Change |
Percent |
||||||||||
Gross margin |
$ |
4,512 |
$ |
5,748 |
$ |
(1,236) |
(21.5) |
% |
||||||
Depreciation, amortization and property taxes |
456 |
111 |
345 |
310.8 |
% |
|||||||||
Other operating expenses |
5,276 |
3,453 |
1,823 |
52.8 |
% |
|||||||||
Operating (loss) income |
$ |
(1,220) |
$ |
2,184 |
$ |
(3,404) |
(155.9) |
% |
For the nine months ended September 30, 2018, PESCO's gross margin was lower by
Matters discussed in this release may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements. Please refer to the Safe Harbor for Forward-Looking Statements in the Company's 2017 Annual Report on Form 10-K for further information on the risks and uncertainties related to the Company's forward-looking statements.
Unless otherwise noted, earnings per share are presented on a diluted basis.
Conference Call
About
Please note that
For more information, contact:
Senior Vice President and Chief Financial Officer
302.734.6799
Financial Summary |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||
Gross Margin |
|||||||||||||||
Regulated Energy segment |
$ |
51,269 |
$ |
46,909 |
$ |
162,926 |
$ |
151,147 |
|||||||
Unregulated Energy segment |
11,933 |
13,272 |
59,149 |
53,827 |
|||||||||||
Other businesses and eliminations |
(84) |
(105) |
(397) |
(325) |
|||||||||||
Total Gross Margin |
$ |
63,118 |
$ |
60,076 |
$ |
221,678 |
$ |
204,649 |
|||||||
Operating Income |
|||||||||||||||
Regulated Energy segment |
$ |
15,915 |
$ |
15,523 |
$ |
56,930 |
$ |
53,004 |
|||||||
Unregulated Energy segment |
(3,933) |
(951) |
10,241 |
10,626 |
|||||||||||
Other businesses and eliminations |
54 |
60 |
(1,481) |
162 |
|||||||||||
Total Operating Income |
12,036 |
14,632 |
65,690 |
63,792 |
|||||||||||
Other Expense, net |
(11) |
(154) |
(204) |
(1,855) |
|||||||||||
Interest Charges |
4,430 |
3,321 |
11,976 |
9,133 |
|||||||||||
Pre-tax Income |
7,595 |
11,157 |
53,510 |
52,804 |
|||||||||||
Income Taxes |
2,057 |
4,324 |
14,731 |
20,781 |
|||||||||||
Net Income |
$ |
5,538 |
$ |
6,833 |
$ |
38,779 |
$ |
32,023 |
|||||||
Earnings Per Share of Common Stock |
|||||||||||||||
Basic |
$ |
0.34 |
$ |
0.42 |
$ |
2.37 |
$ |
1.96 |
|||||||
Diluted |
$ |
0.34 |
$ |
0.42 |
$ |
2.36 |
$ |
1.96 |
Financial Summary Highlights
Key variances, between the three months ended
(in thousands, except per share data) |
Pre-tax |
Net |
Earnings |
|||||||||
Third Quarter of 2017 Reported Results |
$ |
11,157 |
$ |
6,833 |
$ |
0.42 |
||||||
Increased (Decreased) Gross Margins: |
||||||||||||
Eastern Shore and Peninsula Pipeline service expansions* |
3,616 |
2,636 |
0.16 |
|||||||||
Pass-through of lower taxes to regulated energy customers(1) |
(1,993) |
(1,454) |
(0.09) |
|||||||||
Implementation of Eastern Shore settled rates* (2) |
1,161 |
847 |
0.05 |
|||||||||
Natural gas growth (excluding service expansions) |
734 |
535 |
0.03 |
|||||||||
PESCO results (decrease primarily due to imbalance adjustments) |
(629) |
(459) |
(0.03) |
|||||||||
Retail margins per gallon |
(469) |
(342) |
(0.02) |
|||||||||
Florida electric reliability/modernization program* |
464 |
339 |
0.02 |
|||||||||
Unregulated energy customer consumption |
(374) |
(273) |
(0.02) |
|||||||||
GRIP* |
329 |
240 |
0.01 |
|||||||||
2,839 |
2,069 |
0.11 |
||||||||||
Decreased (Increased) Other Operating Expenses: |
||||||||||||
Outside services and facilities maintenance costs (3) |
(1,532) |
(1,117) |
(0.07) |
|||||||||
Depreciation, asset removal and property tax costs due to new capital investments (3) |
(1,447) |
(1,055) |
(0.06) |
|||||||||
Benefits and other employee-related expenses (3) |
(758) |
(553) |
(0.03) |
|||||||||
Payroll expense (increased staffing and annual salary increases) (3) |
(754) |
(550) |
(0.03) |
|||||||||
Operating expenses to increase staffing, infrastructure and risk management systems |
(452) |
(330) |
(0.02) |
|||||||||
Early termination of facility lease due to consolidation of operations facilities(3) |
(423) |
(309) |
(0.02) |
|||||||||
(5,366) |
(3,914) |
(0.23) |
||||||||||
Interest charges |
(1,109) |
(809) |
(0.04) |
|||||||||
Income taxes - including TCJA impact - decreased effective tax rate for regulated energy |
— |
1,454 |
0.09 |
|||||||||
Income taxes - including TCJA impact - change in effective tax rate for unregulated |
— |
(151) |
(0.01) |
|||||||||
Net other changes |
74 |
56 |
— |
|||||||||
(1,035) |
550 |
0.04 |
||||||||||
Third Quarter of 2018 Reported Results |
$ |
7,595 |
$ |
5,538 |
$ |
0.34 |
||||||
(1) "Pass-through of lower taxes to regulated energy customers" represents the amounts that have already been refunded to customers or reserves established for future refunds and/or lower rates to customers in 2018 as a result of lower taxes due to the TCJA, which are offset by the corresponding decrease in federal income taxes and are expected to have no impact on net income. |
||||||||||||
(2) Excluding pass-through of lower taxes to regulated energy customers associated with the TCJA, which are broken out separately and discussed in footnote 1. |
||||||||||||
(3) Excluding incremental operating expenses for PESCO. |
*See the Major Projects and Initiatives table later in this press release.
Key variances, between the nine months ended
(in thousands, except per share data) |
Pre-tax |
Net |
Earnings |
|||||||||
Nine Months Ended September 30, 2017 Reported Results |
$ |
52,804 |
$ |
32,023 |
$ |
1.96 |
||||||
Adjusting for unusual items: |
||||||||||||
One-time separation expenses associated with a former executive |
(1,548) |
(1,421) |
(0.09) |
|||||||||
Absence of Xeron expenses, including 2017 wind-down expenses |
829 |
601 |
0.04 |
|||||||||
(719) |
(820) |
(0.05) |
||||||||||
Increased (Decreased) Gross Margins: |
||||||||||||
Pass-through of lower taxes to regulated energy customers(1) |
(7,530) |
(5,457) |
(0.33) |
|||||||||
Implementation of Eastern Shore settled rates* (2) |
6,256 |
4,534 |
0.28 |
|||||||||
Eastern Shore and Peninsula Pipeline service expansions* |
5,966 |
4,323 |
0.26 |
|||||||||
Return to normal weather |
5,342 |
3,872 |
0.24 |
|||||||||
Natural gas growth (including customer and consumption growth, but excluding |
4,098 |
2,970 |
0.18 |
|||||||||
Unregulated energy growth excluding PESCO |
1,704 |
1,234 |
0.08 |
|||||||||
Florida electric reliability/modernization program* |
1,231 |
892 |
0.05 |
|||||||||
GRIP* |
931 |
675 |
0.04 |
|||||||||
Non-recurring margin decrease at PESCO |
(863) |
(626) |
(0.04) |
|||||||||
Margin from PESCO operations |
(373) |
(271) |
(0.02) |
|||||||||
16,762 |
12,146 |
0.74 |
||||||||||
Decreased (Increased) Other Operating Expenses: |
||||||||||||
Depreciation, asset removal and property tax costs due to new capital investments (3) |
(3,401) |
(2,465) |
(0.15) |
|||||||||
Payroll expense (increased staffing and annual salary increases)(3) |
(3,287) |
(2,382) |
(0.15) |
|||||||||
Facilities maintenance costs (3) |
(2,275) |
(1,649) |
(0.10) |
|||||||||
Operating expenses to increase staffing, infrastructure and risk management systems |
(2,167) |
(1,571) |
(0.10) |
|||||||||
Incentive compensation costs (based on period-over-period results)(3) |
(1,046) |
(758) |
(0.05) |
|||||||||
Vehicle, credit collections, other taxes, sales and advertising costs (3) |
(1,010) |
(732) |
(0.04) |
|||||||||
Benefits and other employee-related expenses (3) |
(749) |
(543) |
(0.03) |
|||||||||
Regulatory costs (3) |
536 |
389 |
0.02 |
|||||||||
Early termination of facility lease due to consolidation of operations facilities(3) |
(423) |
(306) |
(0.02) |
|||||||||
(13,822) |
(10,017) |
(0.62) |
||||||||||
Interest charges |
(2,843) |
(2,060) |
(0.13) |
|||||||||
Income taxes - including TCJA impact - decreased effective tax rate for regulated energy |
— |
5,457 |
0.33 |
|||||||||
Income taxes - including TCJA impact - decreased effective tax rate for unregulated |
— |
1,087 |
0.07 |
|||||||||
Net other changes |
1,328 |
963 |
0.06 |
|||||||||
(1,515) |
5,447 |
0.33 |
||||||||||
Nine Months Ended September 30, 2018 Reported Results |
$ |
53,510 |
$ |
38,779 |
$ |
2.36 |
||||||
(1) "Pass-through of lower taxes to regulated energy customers" represents amounts that have already been refunded to customers or reserves established for future refunds and/or lower rates to customers in 2018 as a result of lower taxes due to the TCJA, which are offset by the corresponding decrease in federal income taxes and are expected to have no impact on net income. |
||||||||||||
(2) Excluding pass-through of lower taxes to regulated energy customers associated with the TCJA, which are broken out separately and discussed in footnote 1 |
||||||||||||
(3) Excluding incremental operating expenses for PESCO. |
*See the Major Projects and Initiatives table later in this press release.
Recently Completed and Ongoing Major Projects and Initiatives
The Company constantly seeks and develops additional projects and initiatives in order to further increase shareholder value and serve its customers. The following represent the major projects recently completed and currently underway. In the future, the Company will add new projects to this table as such projects are initiated.
Gross Margin for the Period |
|||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
Year Ended |
Estimate for |
||||||||||||||||||||||||
September 30, |
September 30, |
December 31, |
Fiscal |
||||||||||||||||||||||||
in thousands |
2018 |
2017 |
2018 |
2017 |
2017 |
2018 |
2019 |
||||||||||||||||||||
Florida GRIP |
$ |
3,722 |
$ |
3,393 |
$ |
10,933 |
$ |
10,002 |
$ |
13,454 |
$ |
14,287 |
$ |
14,370 |
|||||||||||||
Eastern Shore Rate Case (1) |
2,181 |
1,020 |
7,276 |
1,020 |
3,693 |
9,800 |
9,800 |
||||||||||||||||||||
Florida Electric Reliability/Modernization Pilot Program (1) |
464 |
— |
1,231 |
— |
94 |
1,558 |
1,558 |
||||||||||||||||||||
New Smyrna Beach, Florida Project (1) |
352 |
— |
1,056 |
— |
235 |
1,409 |
1,409 |
||||||||||||||||||||
2017 Eastern Shore System Expansion Project - |
2,409 |
— |
4,439 |
— |
433 |
8,009 |
15,773 |
||||||||||||||||||||
Northwest Florida Expansion Project (1) |
1,307 |
— |
2,177 |
— |
— |
3,484 |
6,500 |
||||||||||||||||||||
(Palm Beach County) Belvedere, Florida Project (1) |
— |
— |
— |
— |
— |
— |
2,023 |
||||||||||||||||||||
Total |
$ |
10,435 |
$ |
4,413 |
$ |
27,112 |
$ |
11,022 |
$ |
17,909 |
$ |
38,547 |
$ |
51,433 |
|||||||||||||
(1) Gross margin amounts included in this table have not been adjusted to reflect the impact of the TCJA. Any refunds and/or rate reductions implemented in the Company's regulated businesses were or will be offset by lower federal income taxes due to the TCJA. |
Ongoing Growth Initiatives
GRIP
GRIP is a natural gas pipe replacement program approved by the
Regulatory Proceedings
Eastern Shore Rate Case/Settled Rates
Florida Electric Reliability/Modernization Program
In
Major Projects and Initiatives Currently Underway
In the fourth quarter of 2017, the Company commenced construction of a 14-mile gas transmission pipeline to provide additional capacity to serve current and planned customer growth in the Company's
2017
In
In the Company's first expansion of natural gas service into
(
Peninsula Pipeline is constructing a transmission line to deliver natural gas to the Company's natural gas distribution system in
Impact of Hurricane Michael
In
Future Projects not included in the Table above
In
Other major factors influencing gross margin
Weather and Consumption
Weather did not materially impact results for the three months ended
HDD and CDD Information
Three Months Ended |
Nine Months Ended |
||||||||||||||||
September 30, |
September 30, |
||||||||||||||||
2018 |
2017 |
Variance |
2018 |
2017 |
Variance |
||||||||||||
Delmarva |
|||||||||||||||||
Actual HDD |
10 |
16 |
(6) |
2,729 |
2,262 |
467 |
|||||||||||
10-Year Average HDD ("Delmarva Normal") |
61 |
61 |
— |
2,846 |
2,850 |
(4) |
|||||||||||
Variance from Delmarva Normal |
(51) |
(45) |
(117) |
(588) |
|||||||||||||
Florida |
|||||||||||||||||
Actual HDD |
— |
— |
— |
507 |
298 |
209 |
|||||||||||
10-Year Average HDD ("Florida Normal") |
— |
— |
— |
533 |
555 |
(22) |
|||||||||||
Variance from Florida Normal |
— |
— |
(26) |
(257) |
|||||||||||||
Ohio |
|||||||||||||||||
Actual HDD |
55 |
80 |
(25) |
3,707 |
3,070 |
637 |
|||||||||||
10-Year Average HDD ("Ohio Normal") |
91 |
92 |
(1) |
3,774 |
3,866 |
(92) |
|||||||||||
Variance from Ohio Normal |
(36) |
(12) |
(67) |
(796) |
|||||||||||||
Florida |
|||||||||||||||||
Actual CDD |
1,613 |
1,526 |
87 |
2,704 |
2,606 |
98 |
|||||||||||
10-Year Average CDD ("Florida CDD Normal") |
1,535 |
1,542 |
(7) |
2,593 |
2,579 |
14 |
|||||||||||
Variance from Florida CDD Normal |
78 |
(16) |
111 |
27 |
Natural Gas Distribution Customer and Consumption Growth
The Company's natural gas distribution operations generated
Three Months Ended |
Nine Months Ended |
|||||||
(in thousands) |
September 30, 2018 |
September 30, 2018 |
||||||
Customer growth: |
||||||||
Residential |
$ |
309 |
$ |
1,171 |
||||
Commercial and industrial, excluding new service in Northwest Florida |
283 |
927 |
||||||
New service in Northwest Florida |
305 |
652 |
||||||
Total customer growth |
897 |
2,750 |
||||||
Volume growth: |
||||||||
Residential |
(239) |
613 |
||||||
Commercial and industrial |
57 |
1,030 |
||||||
Other - including unbilled revenue |
19 |
(295) |
||||||
Total volume growth |
(163) |
1,348 |
||||||
Total natural gas distribution growth |
$ |
734 |
$ |
4,098 |
Customer growth for the Company's natural gas distribution operations generated
Lower consumption by natural gas distribution customers reduced margin by
Propane Operations
Gross margin generated by the Company's propane operations decreased by
For the nine months ended
PESCO
PESCO's gross margin for the three and nine months ended September 30, 2018 decreased by
Three Months Ended |
Nine Months Ended |
||||||
September 30, 2018 |
September 30, 2018 |
||||||
(in thousands) |
|||||||
2017 Gross margin |
$ |
1,360 |
$ |
5,749 |
|||
Imbalance positions and true up |
(493) |
(493) |
|||||
Margin changes from growth and the acquisition of certain assets from |
(136) |
119 |
|||||
Non-recurring margin factors - change in gross margin contribution
|
— |
(863) |
|||||
2018 Gross margin |
$ |
731 |
$ |
4,512 |
PESCO generated an operating loss of
For the nine months ended September 30, 2018, PESCO reported an operating loss of
Xeron
Xeron's operations were wound down during the second quarter of 2017. Operating income for the Company's Unregulated Energy Segment for the nine months ended
Capital Investment Growth and Financing Plan
Capital expenditures totaled
2018 |
|||
(dollars in thousands) |
|||
Regulated Energy: |
|||
Natural gas distribution |
$ |
65,594 |
|
Natural gas transmission |
110,813 |
||
Electric distribution |
8,930 |
||
Total Regulated Energy |
185,337 |
||
Unregulated Energy: |
|||
Propane distribution |
13,359 |
||
Other unregulated energy |
7,413 |
||
Total Unregulated Energy |
20,772 |
||
Other: |
|||
Corporate and other businesses |
10,289 |
||
Total Other |
10,289 |
||
Total 2018 Forecasted Capital Expenditures |
$ |
216,398 |
The Company's target equity to total capitalization ratio, including short-term borrowings, is between 50 and 60 percent. Over the past several years, the Company has been deploying increased amounts of capital on new projects, many of which have longer construction periods. The Company seeks to align the permanent financing of these capital projects with their in-service dates to the extent feasible.
In 2017, the Company refinanced
In
Chesapeake Utilities Corporation and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (in thousands, except shares and per share data) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||
Operating Revenues |
|||||||||||||||
Regulated Energy |
$ |
72,770 |
$ |
69,703 |
$ |
252,667 |
$ |
238,353 |
|||||||
Unregulated Energy and other |
67,509 |
57,233 |
263,632 |
198,827 |
|||||||||||
Total Operating Revenues |
140,279 |
126,936 |
516,299 |
437,180 |
|||||||||||
Operating Expenses |
|||||||||||||||
Regulated Energy cost of sales |
21,501 |
22,794 |
89,741 |
87,206 |
|||||||||||
Unregulated Energy and other cost of sales |
55,660 |
44,066 |
204,880 |
145,325 |
|||||||||||
Operations |
32,821 |
29,274 |
101,804 |
91,778 |
|||||||||||
Maintenance |
3,208 |
2,737 |
10,419 |
9,370 |
|||||||||||
Gain from a settlement |
— |
— |
(130) |
(130) |
|||||||||||
Depreciation and amortization |
10,633 |
9,362 |
30,176 |
27,267 |
|||||||||||
Other taxes |
4,420 |
4,071 |
13,719 |
12,572 |
|||||||||||
Total operating expenses |
128,243 |
112,304 |
450,609 |
373,388 |
|||||||||||
Operating Income |
12,036 |
14,632 |
65,690 |
63,792 |
|||||||||||
Other expense, net |
(11) |
(154) |
(204) |
(1,855) |
|||||||||||
Interest charges |
4,430 |
3,321 |
11,976 |
9,133 |
|||||||||||
Income Before Income Taxes |
7,595 |
11,157 |
53,510 |
52,804 |
|||||||||||
Income taxes |
2,057 |
4,324 |
14,731 |
20,781 |
|||||||||||
Net Income |
$ |
5,538 |
$ |
6,833 |
$ |
38,779 |
$ |
32,023 |
|||||||
Weighted Average Common Shares Outstanding: |
|||||||||||||||
Basic |
16,378,545 |
16,344,442 |
16,366,608 |
16,334,210 |
|||||||||||
Diluted |
16,428,439 |
16,389,635 |
16,416,255 |
16,378,633 |
|||||||||||
Earnings Per Share of Common Stock: |
|||||||||||||||
Basic |
$ |
0.34 |
$ |
0.42 |
$ |
2.37 |
$ |
1.96 |
|||||||
Diluted |
$ |
0.34 |
$ |
0.42 |
$ |
2.36 |
$ |
1.96 |
Chesapeake Utilities Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited)
|
||||||||
Assets |
September 30, 2018 |
December 31, 2017 |
||||||
(in thousands, except shares and per share data) |
||||||||
Property, Plant and Equipment |
||||||||
Regulated Energy |
$ |
1,242,840 |
$ |
1,073,736 |
||||
Unregulated Energy |
220,721 |
210,682 |
||||||
Other businesses and eliminations |
34,975 |
27,699 |
||||||
Total property, plant and equipment |
1,498,536 |
1,312,117 |
||||||
Less: Accumulated depreciation and amortization |
(295,449) |
(270,599) |
||||||
Plus: Construction work in progress |
60,243 |
84,509 |
||||||
Net property, plant and equipment |
1,263,330 |
1,126,027 |
||||||
Current Assets |
||||||||
Cash and cash equivalents |
6,215 |
5,614 |
||||||
Trade and other receivables (less allowance for uncollectible accounts of $987 |
52,660 |
77,223 |
||||||
Accrued revenue |
12,352 |
22,279 |
||||||
Propane inventory, at average cost |
7,444 |
8,324 |
||||||
Other inventory, at average cost |
4,786 |
12,022 |
||||||
Regulatory assets |
6,891 |
10,930 |
||||||
Storage gas prepayments |
6,989 |
5,250 |
||||||
Income taxes receivable |
8,725 |
14,778 |
||||||
Prepaid expenses |
9,775 |
13,621 |
||||||
Derivative assets, at fair value |
10,568 |
1,286 |
||||||
Other current assets |
2,557 |
7,260 |
||||||
Total current assets |
128,962 |
178,587 |
||||||
Deferred Charges and Other Assets |
||||||||
Goodwill |
19,604 |
19,604 |
||||||
Other intangible assets, net |
4,073 |
4,686 |
||||||
Investments, at fair value |
7,951 |
6,756 |
||||||
Regulatory assets |
76,343 |
75,575 |
||||||
Other assets |
5,293 |
3,699 |
||||||
Total deferred charges and other assets |
113,264 |
110,320 |
||||||
Total Assets |
$ |
1,505,556 |
$ |
1,414,934 |
Chesapeake Utilities Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) |
||||||||
Capitalization and Liabilities |
September 30, 2018 |
December 31, 2017 |
||||||
(in thousands, except shares and per share data) |
||||||||
Capitalization |
||||||||
Stockholders' equity |
||||||||
Preferred stock, par value $0.01 per share (authorized 2,000,000 shares), no |
$ |
— |
$ |
— |
||||
Common stock, par value $0.4867 per share (authorized 50,000,000 shares) |
7,971 |
7,955 |
||||||
Additional paid-in capital |
255,509 |
253,470 |
||||||
Retained earnings |
249,805 |
229,141 |
||||||
Accumulated other comprehensive loss |
(4,987) |
(4,272) |
||||||
Deferred compensation obligation |
3,818 |
3,395 |
||||||
Treasury stock |
(3,818) |
(3,395) |
||||||
Total stockholders' equity |
508,298 |
486,294 |
||||||
Long-term debt, net of current maturities |
241,597 |
197,395 |
||||||
Total capitalization |
749,895 |
683,689 |
||||||
Current Liabilities |
||||||||
Current portion of long-term debt |
9,613 |
9,421 |
||||||
Short-term borrowing |
268,293 |
250,969 |
||||||
Accounts payable |
60,228 |
74,688 |
||||||
Customer deposits and refunds |
34,887 |
34,751 |
||||||
Accrued interest |
3,969 |
1,742 |
||||||
Dividends payable |
6,060 |
5,312 |
||||||
Accrued compensation |
10,396 |
13,112 |
||||||
Regulatory liabilities |
9,099 |
6,485 |
||||||
Derivative liabilities, at fair value |
9,774 |
6,247 |
||||||
Other accrued liabilities |
14,819 |
10,273 |
||||||
Total current liabilities |
427,138 |
413,000 |
||||||
Deferred Credits and Other Liabilities |
||||||||
Deferred income taxes |
146,814 |
135,850 |
||||||
Regulatory liabilities |
141,840 |
140,978 |
||||||
Environmental liabilities |
7,941 |
8,263 |
||||||
Other pension and benefit costs |
28,839 |
29,699 |
||||||
Deferred investment tax credits and other liabilities |
3,089 |
3,455 |
||||||
Total deferred credits and other liabilities |
328,523 |
318,245 |
||||||
Total Capitalization and Liabilities |
$ |
1,505,556 |
$ |
1,414,934 |
Chesapeake Utilities Corporation and Subsidiaries Distribution Utility Statistical Data (Unaudited) |
||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2018 |
For the Three Months Ended September 30, 2017 |
|||||||||||||||||||||||||||||||
Delmarva NG |
Chesapeake |
FPU NG |
FPU Electric |
Delmarva NG |
Chesapeake |
FPU NG |
FPU Electric |
|||||||||||||||||||||||||
Operating Revenues (in thousands) |
||||||||||||||||||||||||||||||||
Residential |
$ |
5,497 |
$ |
1,290 |
$ |
5,601 |
$ |
13,991 |
$ |
5,705 |
$ |
1,247 |
$ |
6,544 |
$ |
14,112 |
||||||||||||||||
Commercial |
4,961 |
1,424 |
5,354 |
11,245 |
5,888 |
1,344 |
6,070 |
11,701 |
||||||||||||||||||||||||
Industrial |
1,722 |
3,068 |
4,723 |
361 |
1,700 |
1,524 |
5,025 |
748 |
||||||||||||||||||||||||
Other (1) |
854 |
500 |
1,712 |
(1,767) |
92 |
954 |
(854) |
(2,481) |
||||||||||||||||||||||||
Total Operating Revenues |
$ |
13,034 |
$ |
6,282 |
$ |
17,390 |
$ |
23,830 |
$ |
13,385 |
$ |
5,069 |
$ |
16,785 |
$ |
24,080 |
||||||||||||||||
Volume (in Dts for natural gas and MWHs for electric) |
||||||||||||||||||||||||||||||||
Residential |
180,396 |
53,051 |
214,213 |
96,218 |
184,993 |
53,228 |
247,118 |
93,889 |
||||||||||||||||||||||||
Commercial |
427,173 |
1,158,545 |
337,091 |
92,416 |
449,543 |
1,172,625 |
366,318 |
88,917 |
||||||||||||||||||||||||
Industrial |
1,213,527 |
6,511,997 |
1,130,299 |
3,180 |
1,169,465 |
2,393,709 |
1,082,701 |
4,340 |
||||||||||||||||||||||||
Other |
26,648 |
— |
434,976 |
1,913 |
35,519 |
— |
334,882 |
1,880 |
||||||||||||||||||||||||
Total |
1,847,744 |
7,723,593 |
2,116,579 |
193,727 |
1,839,520 |
3,619,562 |
2,031,019 |
189,026 |
||||||||||||||||||||||||
Average Customers |
||||||||||||||||||||||||||||||||
Residential |
70,795 |
16,484 |
55,763 |
24,811 |
68,118 |
15,782 |
54,543 |
24,628 |
||||||||||||||||||||||||
Commercial(2) |
6,907 |
1,509 |
3,912 |
7,507 |
6,782 |
1,425 |
4,007 |
7,455 |
||||||||||||||||||||||||
Industrial(2) |
161 |
17 |
2,329 |
2 |
145 |
78 |
2,132 |
2 |
||||||||||||||||||||||||
Other |
5 |
— |
12 |
— |
3 |
— |
— |
— |
||||||||||||||||||||||||
Total |
77,868 |
18,010 |
62,016 |
32,320 |
75,048 |
17,285 |
60,682 |
32,085 |
||||||||||||||||||||||||
Chesapeake Utilities Corporation and Subsidiaries Distribution Utility Statistical Data (Unaudited) |
||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2018 |
For the Nine Months Ended September 30, 2017 |
|||||||||||||||||||||||||||||||
Delmarva NG |
Chesapeake |
FPU NG |
FPU Electric |
Delmarva NG |
Chesapeake |
FPU NG |
FPU Electric |
|||||||||||||||||||||||||
Operating Revenues (in thousands) |
||||||||||||||||||||||||||||||||
Residential |
$ |
54,819 |
$ |
4,510 |
$ |
24,488 |
$ |
35,338 |
$ |
42,511 |
$ |
4,165 |
$ |
24,945 |
$ |
33,915 |
||||||||||||||||
Commercial |
28,655 |
4,669 |
20,489 |
28,879 |
23,724 |
4,262 |
23,114 |
31,190 |
||||||||||||||||||||||||
Industrial |
6,015 |
7,794 |
16,314 |
1,131 |
5,383 |
4,860 |
15,727 |
1,952 |
||||||||||||||||||||||||
Other (1) |
(4,498) |
1,489 |
(2,406) |
(4,415) |
(1,586) |
2,819 |
(4,909) |
(4,277) |
||||||||||||||||||||||||
Total Operating Revenues |
$ |
84,991 |
$ |
18,462 |
$ |
58,885 |
$ |
60,933 |
$ |
70,032 |
$ |
16,106 |
$ |
58,877 |
$ |
62,780 |
||||||||||||||||
Volume (in Dts for natural gas and MWHs for electric) |
||||||||||||||||||||||||||||||||
Residential |
3,180,160 |
278,976 |
1,066,559 |
241,428 |
2,576,001 |
253,888 |
1,022,598 |
224,513 |
||||||||||||||||||||||||
Commercial |
2,844,296 |
3,526,943 |
1,304,827 |
233,223 |
2,445,262 |
3,991,244 |
1,426,875 |
229,545 |
||||||||||||||||||||||||
Industrial |
4,030,716 |
13,278,643 |
3,680,779 |
11,810 |
3,749,961 |
8,519,221 |
3,372,394 |
12,250 |
||||||||||||||||||||||||
Other |
56,941 |
— |
1,419,623 |
5,716 |
66,273 |
— |
1,281,993 |
5,627 |
||||||||||||||||||||||||
Total |
10,112,113 |
17,084,562 |
7,471,788 |
492,177 |
8,837,497 |
12,764,353 |
7,103,860 |
471,935 |
||||||||||||||||||||||||
Average Customers |
||||||||||||||||||||||||||||||||
Residential |
71,022 |
16,366 |
55,541 |
24,723 |
68,419 |
15,739 |
54,312 |
24,549 |
||||||||||||||||||||||||
Commercial(2) |
6,975 |
1,509 |
3,923 |
7,494 |
6,843 |
1,417 |
4,084 |
7,443 |
||||||||||||||||||||||||
Industrial(2) |
155 |
16 |
2,289 |
2 |
145 |
78 |
2,042 |
2 |
||||||||||||||||||||||||
Other |
5 |
— |
11 |
— |
6 |
— |
— |
— |
||||||||||||||||||||||||
Total |
78,157 |
17,891 |
61,764 |
32,219 |
75,413 |
17,234 |
60,438 |
31,994 |
||||||||||||||||||||||||
(1) |
Operating Revenues from "Other" sources include unbilled revenue, under (over) recoveries of fuel cost, conservation revenue, other miscellaneous charges, fees for billing services provided to third parties, and adjustments or changes in taxes, such as the TCJA, which are passed through to customers. This amount also includes the reserve for estimated customer refunds associated with the TCJA. |
(2) |
Certain volumes and customers have been reclassified when compared to the prior year for consistency with current year presentation. |
View original content:http://www.prnewswire.com/news-releases/chesapeake-utilities-corporation-reports-third-quarter-2018-results-300747168.html
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