Chesapeake Utilities Corporation reported a significant increase in financial performance for the first quarter of 2025, with total operating revenues reaching $298.7 million, up from $245.7 million in the same period of 2024. The company's net income also rose to $50.9 million, or $2.22 per share, compared to $46.2 million, or $2.07 per share, in the prior year. This represents a 9.2% increase in net income year-over-year, driven by higher customer consumption and regulatory initiatives.
The company experienced notable growth in both its regulated and unregulated energy segments. Regulated energy revenues increased to $199.6 million from $168.4 million, while unregulated energy revenues rose to $106.7 million from $83.1 million. The increase in operating income was attributed to a combination of factors, including a 4.2% rise in adjusted gross margin for the regulated segment, which was bolstered by organic growth in natural gas distribution and pipeline expansion projects. The unregulated segment saw a 20.5% increase in adjusted gross margin, primarily due to heightened demand for propane distribution and virtual pipeline services.
Chesapeake Utilities has also made strategic moves to enhance its operational capabilities. The company completed the acquisition of Florida City Gas (FCG) in November 2023, which has contributed to its financial results. The integration of FCG has incurred transaction-related expenses, but the overall impact has been positive, with adjusted net income for the quarter reaching $51.1 million. The company is actively pursuing additional growth opportunities, including investments in renewable natural gas and infrastructure projects aimed at expanding its service capabilities.
Operationally, Chesapeake Utilities reported an increase in customer counts, with residential customer growth of approximately 4.0% on the Delmarva Peninsula and 3.0% in Florida. The company also noted a rise in customer consumption due to colder weather conditions, which contributed an estimated $5.5 million to adjusted gross margin. The total capital expenditures for the quarter were $112.9 million, reflecting ongoing investments in infrastructure and growth initiatives.
Looking ahead, Chesapeake Utilities remains optimistic about its growth trajectory, with plans to continue investing in both regulated and unregulated energy sectors. The company anticipates that its ongoing projects and regulatory initiatives will further enhance its financial performance in the coming quarters. The management has expressed confidence in achieving its strategic goals while maintaining a strong capital structure to support future growth.
About CHESAPEAKE UTILITIES CORP
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