Chesapeake Utilities : 2024 AGA Financial Forum Presentation

AGA

Financial

Forum

MAY 19 - 21, 2024

Safe Harbor for Forward-Looking Statements

Safe Harbor Statement

Some of the statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable law. Such forward--looking statements may be identified by the use of words, such as "project," "believe," "expect," "anticipate," "intend," "plan," "estimate," "continue," "potential," "forecast" or other similar words, or future or conditional verbs such as "may," "will," "should," "would" or "could." These statements represent our intentions, plans, expectations, assumptions and beliefs about our future financial performance, business strategy, projected plans and objectives. These statements are subject to many risks and uncertainties and actual results may materially differ from those expressed in these forward-looking statements. Please refer to Chesapeake Utilities Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC and other SEC filings concerning factors that could cause those results to be different than contemplated in this presentation.

Non-GAAP Financial Information

This presentation includes non-GAAP financial measures including Adjusted Gross Margin, Adjusted Net Income and Adjusted Earnings Per Share ("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 Adjusted Gross Margin by deducting the purchased cost of natural gas, propane and electricity and the cost of labor spent on direct revenue-producing activities from operating revenues. The costs included in Adjusted Gross Margin exclude depreciation and amortization and certain costs presented in operations and maintenance expenses in accordance with regulatory requirements. The Company calculates Adjusted Net Income and Adjusted EPS by deducting costs and expenses associated with significant acquisitions that may affect the comparison of period-over-period results. These non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures. The Company believes that these non-GAAP measures are useful and meaningful to investors as a basis for making investment decisions and provide investors with information that demonstrates the profitability achieved by the Company under allowed rates for regulated energy operations and under the Company's competitive pricing structures for unregulated energy operations. The Company's management uses these non-GAAP financial measures in assessing a business unit and Company performance. Other companies may calculate these non-GAAP financial measures in a different manner.

See Appendix for a reconciliation of Gross Margin, Net Income and EPS, all as defined under GAAP, to our non-GAAP measures of Adjusted Gross Margin, Adjusted Net Income, and Adjusted EPS for each of the periods presented.

*Unless otherwise noted, EPS and Adjusted EPS are presented on a diluted basis.

2

AGA Forum Participants

Jeff Householder

Chair of the Board, President, and Chief Executive Officer

Beth Cooper

Executive Vice President,

Chief Financial Officer, Treasurer, and

Assistant Corporate Secretary

Jim Moriarty

Executive Vice President, General

Counsel, Corporate Secretary, and

Chief Policy and Risk Officer

Jeff Sylvester

Senior Vice President and

Chief Operating Officer

Michael Galtman

Senior Vice President and

Chief Accounting Officer

Noah Russell

Assistant Vice President and

Assistant Treasurer

Lucia Dempsey

Head of Investor Relations

3

Growing, Diversified Portfolio of Energy Delivery Solutions

Total Assets

14%

85%

1%

$3.3B

as of Mar 31, 2024

Unregulated

Other

Regulated

Both Regulated and Unregulated Unregulated

Chesapeake Utilities Corporation Overview

NYSE: CPK

$2.5B Market Cap company

160+ years providing energy

~1,250 current employees

~440,000 distribution customers

Our Business Lines	States We Serve
Regulated Energy Segment
Natural Gas Transmission	DE, FL, MD, PA, OH
Natural Gas Distribution	DE, MD, FL
Electric Distribution	FL
Unregulated Energy Segment
Propane Distribution	PA, DE, MD, VA, NC, SC, FL
Natural Gas Pipeline System	OH
CNG Services	Multiple - Including
CNG Fueling Station in GA
CHP Generation	FL
RNG Opportunities	Projects in OH, MD, FL

4

Track Record of Investment Growth Driving Top-Quartile Performance

$3,500.0

$200.0

Significant capital investment over the last 20 years has driven strongTotal

$180.0

financial performance, earnings growth and increased shareholder value,	Assets:
$3.3bn
while maintaining consistently top-quartile ROEs
$160.0

$6.00
	$2,500.0																					$140.0Adj. EPS:
																							$5.31
$5.00																							10.00%
																						$120.0ROE
	$2,000.0																						9.5%
																						$100.0
$4.00																							Adj. Net
																							5.00%
																							Income:
	$1,500.0																						$97.8M
																						$80.0
$3.00																							Annual
																							0.00%
																						$60.0	DPS:
	$1,000.0																						$2.36
$2.00
																						$40.0
																							-5.00%
	$500.0
$1.00
																						$20.0
$0.00	$-																					$-	-10.00%
2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
	2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

>10X Total

Asset Growth

10X Adjusted

Net Income Growth

Adjusted EPS

20-Yr CAGR: 8%

20 Years of

Consistently

Top-Quartile ROEs

Dividend per Share

20-Yr CAGR: 6%

140+ Years

of Operations

ACQUISITION OF

Significant	Bolt-on	Regulatory
Organic Growth	Acquisitions	Success

ACQUISITION OF

5

Well-Positioned for Long-Term Success

Strong Customer Demand Growth

Significant Capital

Investment Opportunities

Proactive Regulatory	Entrepreneurial
& Innovative
Approach
Culture

• Customer growth of
  4.2% in Delmarva and
  3.6% in Florida
• Customer demand for
  CPK energy services remains high
• New service additions within the utility markets continue above industry levels
• Builder and Commercial and Industrial customers interest remains strong

• Strong capital investment growth opportunities across the enterprise
• Enhanced by FCG, which brings new markets with high demand and exposure to the LNG, space and travel industries
• Blend of infrastructure, technology, and new growth investments
• Geographic diversity of investments to capture opportunities in multiple markets

• Regulatory agenda is very active, driven by CapEx opportunities and economic conditions
• Engaged in policy making discussions within all state jurisdictions
• Regulatory environment continues to be constructive
• Support for PPC/ESNG projects and energy efficiency programs

• Continued focus on innovative customer solutions
• Leveraging unregulated businesses for strategic solutions
• Sustainability investments that align with our other businesses
• Continuous improvement mindset

1 FERC = Federal Energy Regulatory Commission.

6

Executing On Our Long-Term Growth Plan: Investment Capital

Growth in earnings to support dividend growth and increased shareholder value

Prudently		Proactively		Continually
deploy		manage		execute on
investment		regulatory		business
capital		agenda		transformation

Foundation of operational excellence across the organization

7

5-Year Capex Guidance is On-Track and Achievable

~$1.3 billion of identified capital projects support our 5-year CapEx guidance of $1.5 - $1.8 billion

Segment	5-Year Guidance
Regulated
$600 - $645M
Distribution
Regulated
$435 - $590M
Transmission
Regulated
$300 - $340M
Infrastructure
Unregulated
$140 - $165M
Businesses
Technology	$70 - $90M
Total	$1.5 - $1.8B

While only

five months

into our CapEx

guidance period,

Chesapeake

has already made significant progress identifying

capital projects,

many of which are

also already

underway

Regulated CapEx - Identified Projects	5-Year Spend
Natural Gas LDC Organic Growth	$625 million
Newberry, Wildlight Phase 2	$28 million
Boynton Beach, New Smyrna	$36 million
Lake Mattie, St. Cloud, Plant City	$42 million
Other Approved Pipeline Projects	$49 million
Worcester Resiliency	$80 million
GUARD / SAFE Programs1	$230 million
Eastern Shore Capital Surcharge	$75 million
Florida Electric Storm Protection Plan	$50 million
Technology Transformation	$80 million
Total Identified & Ongoing Capital	~$1.3 billion

1 Includes $50 million requested in April 2024 but not yet approved.

8

2024 Capital Investment On Track to Drive Margin Growth

Q1 Capital Spend Progress

21%

in Q1

79% in Q2 - Q4

Quarter-to-date capital expenditures on track, with $70.6M in spending on strategic growth opportunities and technology transformation

$300 - $360M 2024E Capital Expenditures

General Corporate CapEx: $4 - $6M

Unregulated Energy CapEx: $31 - $36M

• Propane Distribution: $13 - $15M
• Energy Transmission: $5 - $6M
• Other Unregulated: $13 - $15M

Regulated Energy CapEx: $265 - $318M

• Natural Gas Distribution: $150 - $170M
• Natural Gas Transmission: $90 - $120M
• Electric Distribution: $25 - $28M

We remain on track for 5-Year CapEx Plan of $1.5 - $1.8B

2024E Capex

9

Organic Growth Driving Florida Infrastructure Investment

#	Project Name	Regulatory	In-Service	Total	Adj. Gross Margin ($M)
Status	CapEx	2024E	2025E
1	Beachside Expansion	Approved	Q2 2023	~$11M	$2.5	$2.4
2
St. Cloud / Twin Lakes	Approved	Q3 2023	~$4M	$0.6	$0.6
3	Wildlight Phase 1 & 2	Approved	2024 - 2025 ~$25M	$2.0	$2.0
4	Lake Wales	Approved	Q2 2023	~$2M	$0.5	$0.5
5	Newberry Expansion	Approved	Q3 2024	~$15M	$0.9	$2.6
6	Boynton Beach	Approved	Q1 2025	~$21M	--	$3.3
7	New Smyrna Beach	Approved	Q2 2025	~$15M	--	$1.7
8
St. Cloud Expansion	Approved	Q4 2025	~$20M	--	$2.2
9	Lake Mattie	Approved	Q4 20251	~$18M	--	--
10	Plant City	Approved	Q4 2024	~$4M	$0.3	$1.2
11	Indian River RNG2	Under Review
12	Brevard RNG2	Under Review	2024 - 2025	~$46M	TBA	TBA
13	Medley RNG2	Under Review
14	Pioneer Supply Header Under Review	TBA	TBA	TBA	TBA

1 Expected in-service in late December 2025 so no 2025 margin expected.	10
2 Petition filed in February 2024 with the Florida PSC for these RNG transportation projects, which will facilitate additional capacity from landfills through FCG's system.