DOVER, Del., Nov. 6, 2014 /PRNewswire/ --
- Third quarter net income totaled $3.2
million, or $0.22 per
share
- Quarter-over-quarter earnings per share remained unchanged,
excluding non-recurring items
- Natural gas system expansions and other customer growth
generated $1.9 million in additional
gross margin during the quarter
- Year-to-date net income increased by $2.9 million to $26.0
million, representing $0.19
incremental earnings per share
Chesapeake Utilities Corporation (NYSE: CPK) today reported
third quarter and nine months financial results. The Company's net
income for the three months ended September 30, 2014 was
$3.2 million, or $0.22 per share. This represents a decrease of
$699,000, or $0.05 per share, over the same quarter in 2013,
due principally to the net impact of two non-recurring items in the
third quarter of 2013. These two non-recurring items related
to recovery of previously expensed litigation costs of $1.9 million, which was offset by an accrual of
additional taxes other than income of $698,000. The net of these two items
contributed $697,000 of net income,
or $0.05 per share, to last year's
third quarter. Absent these non-recurring items, the
Company's net income remained unchanged quarter-over-quarter.
For the nine months ended September 30,
2014, the Company reported net income of $26.0 million, or $1.78 per share. This represents an increase of
$2.9 million, or $0.19 per share, compared to the same period in
2013.
"Our results for the most recent quarter and the first nine
months of 2014 continue to reflect the profitable growth
opportunities that we have successfully cultivated in our regulated
and unregulated energy businesses," stated Michael P. McMasters, President and Chief
Executive Officer of Chesapeake Utilities Corporation. "In
addition to the positive results, we have recently announced the
construction of a combined heat and power plant in Florida and a $3.75
million electric rate increase in Florida, which are expected to contribute
additional earnings in 2015 and future years. We also
consummated the sale of BravePoint on October 1, 2014. Our employees' creativity
and hard work continue to transform new opportunities into
initiatives that will contribute to meeting our earnings growth
objectives."
A more detailed discussion and analysis of the Company's results
for each segment are provided in the following pages.
Comparative Results for the Quarters Ended September 30,
2014 and 2013
The Company's operating income for the three months ended
September 30, 2014 was $7.8
million, a decrease of $928,000 over the same quarter in 2013.
Gross margin increased by $3.5
million, which was more than offset by an increase of
$4.4 million in other operating
expenses. The decrease in operating income is due primarily to two
non-recurring items recorded in other operating expenses in the
third quarter of 2013. These items related to recovery of
previously expensed litigation costs of approximately $1.9 million ($376,000 of $1.9
million was incurred during 2013), which was partially
offset by an accrual of additional taxes other than income of
$698,000. Additional details on
key variances in gross margin and other operating expenses are
provided in the Financial Summary Highlights section later in this
release.
Regulated Energy
Operating income for the regulated energy segment decreased by
$1.0 million to $9.2 million for the quarter ended
September 30, 2014, compared to the same quarter in
2013. Additional gross margin of $3.2
million was more than offset by a $4.3 million increase in other operating
expenses. The significant components of the gross margin increase
included:
- $1.2 million of new gross margin
generated from major natural gas service expansions completed in
2013 and 2014;
- $690,000 generated as a result of
other customer growth in natural gas distribution and transmission
services;
- $671,000 generated by the Florida
Gas Reliability Infrastructure Program ("GRIP"); and
- $348,000 generated by the Florida
Public Utilities Company ("FPU") electric operation as a result of
implementing interim rates as part of its base rate case
filing.
The increase in other operating expenses was due primarily to:
(a) the absence of a one-time credit of $1.9
million associated with the City of Marianna litigation cost
recovery in the third quarter of 2013 ($376,000 of $1.9
million was incurred during 2013); (b) $634,000 in higher depreciation, amortization,
asset removal and property tax costs associated with capital
investments to support growth and maintain system integrity; (c)
$558,000 in higher payroll costs
incurred primarily to support recent growth and expand the
Company's capabilities to cultivate future growth; (d) $362,000 in higher safety and related customer
communications activities; (e) $257,000 in increased accruals for incentive
bonuses as a result of strong year-to-date financial performance;
and (f) $246,000 in higher costs
associated with facility maintenance.
Unregulated Energy
The unregulated energy segment reported an operating loss of
$2.0 million for the quarter ended
September 30, 2014, compared to an operating loss of
$1.8 million in the same quarter of
2013. Due to the seasonal nature of the propane distribution
operations, the unregulated energy segment typically reports an
operating loss in the third quarter. Gross margin decreased
by $330,000 due primarily to lower
profit from Xeron, Inc. ("Xeron"), the Company's propane wholesale
marketing subsidiary, as a result of low volatility in wholesale
propane prices during the current quarter. Other operating
expenses decreased by $161,000, due
to the non-recurrence of an accrual of $698,000 recorded in 2013 related to a
contingency for taxes other than income; this decrease was
partially offset by $375,000 of
higher payroll costs principally attributable to resources added to
support growth.
Other
The "Other" segment, which consisted primarily of BravePoint,
reported operating income of $562,000
for the quarter ended September 30, 2014, compared to
$280,000 in the same quarter in 2013.
A gross margin increase of $588,000
due to higher consulting and product sale revenues was partially
offset by a $306,000 increase in
other operating expenses due primarily to the addition of sales
resources. As indicated in the Financial Summary Highlights
section in this release, the sale of BravePoint was completed on
October 1, 2014.
Comparative Results for the Nine Months Ended September 30, 2014 and 2013
The Company's operating income for the nine months ended
September 30, 2014 was $49.9 million, an increase of $5.5 million over the same period in 2013. Gross
margin increased by $19.3 million,
which was partially offset by an increase of $13.8 million in other operating expenses.
Acquisitions completed in 2013 generated $2.6 million in additional operating income
($5.7 million of additional gross
margin, partially offset by $3.1
million of additional other operating expenses) during the
nine months ended September 30, 2014.
Higher natural gas and propane usage due to colder temperatures on
the Delmarva Peninsula generated $2.3
million of additional gross margin. Additional details
on key variances in gross margin and other operating expenses are
provided in the Financial Summary Highlights section later in this
release.
Regulated Energy
Operating income for the regulated energy segment increased by
$4.8 million to $41.0 million for the nine months ended
September 30, 2014, compared to the same period in 2013.
A gross margin increase of $15.0
million was partially offset by a $10.2 million increase in other operating
expenses. The significant components of the gross margin increase
included:
- $5.4 million generated by
Sandpiper as a result of the May 2013
acquisition of the operating assets of Eastern Shore Gas and its
affiliates ("ESG"), which are not related to, or affiliated with,
the Company's interstate natural gas transmission subsidiary,
Eastern Shore Natural Gas Company ("Eastern Shore");
- $4.2 million generated from major
natural gas service expansions completed in 2013 and 2014;
- $2.0 million generated by the
Florida GRIP;
- $1.8 million from other customer
growth in natural gas distribution and transmission services;
and
- $669,000 from higher customer
consumption due to colder temperatures.
The increase in other operating expenses was due primarily to:
(a) $2.2 million in higher
depreciation, amortization, asset removal and property tax costs
associated with capital investments to support growth and maintain
system integrity; (b) $2.2 million in
other operating expenses associated with Sandpiper's operations;
(c) $2.0 million in higher payroll
costs to support recent and future growth and from a change in
vacation policy in 2013; (d) the absence of a one-time credit of
$1.5 million associated with the City
of Marianna litigation cost recovery in 2013; (e) $1.1 million in higher benefits costs as a result
of healthcare costs and other employee-related expenses; (f)
$748,000 in higher costs associated
with facilities maintenance; and (g) $727,000 in increased accruals for incentive
bonuses as a result of strong year-to-date financial
performance. These increases in other operating expenses were
partially offset by the non-recurrence of a sales tax expense of
$726,000 in 2013 directly related to
the ESG acquisition.
Unregulated Energy
Operating income for the unregulated energy segment increased by
$830,000 to $8.8 million for the nine months ended
September 30, 2014, compared to the same period in 2013.
A $3.5 million increase in gross
margin was partially offset by a $2.7
million increase in other operating expenses. The
significant components of the gross margin increase included:
- $1.7 million in higher margin as
a result of higher consumption by retail propane customers due to
colder temperatures;
- $1.4 million in increased
wholesale propane sales, primarily to an affiliate of ESG; and
- $572,000 in higher profit from
Xeron, as higher volatility in wholesale propane prices resulted in
higher profit on trading activity.
The increase in other operating expenses was due primarily to:
(a) $1.2 million in higher payroll
expense due to increased seasonal overtime and additional resources
to support growth; (b) $728,000 in
additional expenses incurred by the entities acquired in 2013; and
(c) the non-recurrence of an accrual of $698,000 recorded in 2013
related to a contingency for taxes other than income.
Other
The "Other" segment reported operating income of $25,000 and $240,000 for the nine months ended
September 30, 2014 and 2013, respectively. BravePoint's gross
margin increased by $821,000 as a
result of higher consulting revenues, while its other operating
expenses increased by $1.0 million as
a result of higher payroll due primarily to the addition of sales
resources and benefits expenses.
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 most recent report on Form 10-K for further
information on the risks and uncertainties related to the Company's
forward-looking statements.
The discussions of the results use the term "gross margin," a
non-Generally Accepted Accounting Principles ("GAAP") financial
measure, which management uses to evaluate the performance of the
Company's business segments. For an explanation of the calculation
of "gross margin," see the footnote to the Financial
Summary.
Share and per share amounts for all periods presented reflect
the three-for-two stock split declared on July 2, 2014, effected in the form of a stock
dividend, and distributed on September
8, 2014. Unless otherwise noted, earnings per share
information is presented on a diluted basis.
Conference Call
Chesapeake Utilities Corporation will host a conference call on
November 7, 2014 at 10:00 a.m. Eastern Time to discuss the Company's
financial results for the quarter ended September 30, 2014. To
participate in this call, dial 866.821.5457 and reference
Chesapeake Utilities Corporation's 2014 Third Quarter Financial
Results Conference Call. To access the replay recording of this
call, please visit the Company's website at
http://investor.chpk.com/results.cfm or download the replay on your
mobile device by accessing the Audiocast section of the Company's
IR App.
About Chesapeake Utilities Corporation
Chesapeake Utilities Corporation is a diversified energy company
engaged in natural gas distribution, transmission and marketing,
electricity distribution, propane gas distribution and wholesale
marketing, and other related services. Information about Chesapeake
Utilities Corporation and the Chesapeake family of businesses is
available at http://www.chpk.com or through its IR App.
For more information, contact:
Beth W. Cooper
Senior Vice President & Chief Financial Officer
302.734.6799
Financial
Summary
|
(in thousands,
except per share)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Gross Margin
(1)
|
|
|
|
|
|
|
|
|
|
|
|
Regulated
Energy
|
$
|
36,316
|
|
|
$
|
33,089
|
|
|
$
|
121,148
|
|
|
$
|
106,142
|
|
Unregulated
Energy
|
6,448
|
|
|
6,778
|
|
|
35,563
|
|
|
32,054
|
|
Other
|
2,880
|
|
|
2,292
|
|
|
7,021
|
|
|
6,246
|
|
Total Gross
Margin
|
$
|
45,644
|
|
|
$
|
42,159
|
|
|
$
|
163,732
|
|
|
$
|
144,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
Regulated Energy
|
$
|
9,202
|
|
|
$
|
10,243
|
|
|
$
|
41,004
|
|
|
$
|
36,169
|
|
Unregulated Energy
|
(1,972)
|
|
|
(1,803)
|
|
|
8,843
|
|
|
8,013
|
|
Other
|
562
|
|
|
280
|
|
|
25
|
|
|
240
|
|
Total
Operating Income
|
7,792
|
|
|
8,720
|
|
|
49,872
|
|
|
44,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (loss),
net of other expenses
|
(32)
|
|
|
101
|
|
|
380
|
|
|
413
|
|
Interest
Charges
|
2,495
|
|
|
2,026
|
|
|
6,954
|
|
|
6,114
|
|
Pre-tax
Income
|
5,265
|
|
|
6,795
|
|
|
43,298
|
|
|
38,721
|
|
Income
Taxes
|
2,085
|
|
|
2,916
|
|
|
17,303
|
|
|
15,617
|
|
Net
Income
|
$
|
3,180
|
|
|
$
|
3,879
|
|
|
$
|
25,995
|
|
|
$
|
23,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
of Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.22
|
|
|
$
|
0.27
|
|
|
$
|
1.79
|
|
|
$
|
1.60
|
|
Diluted
|
$
|
0.22
|
|
|
$
|
0.27
|
|
|
$
|
1.78
|
|
|
$
|
1.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
"Gross margin" is determined 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. Gross margin should
not be considered an alternative to operating income or net income,
which are determined in accordance with GAAP. Chesapeake 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 structure
for non-regulated segments. Chesapeake's management uses gross
margin in measuring its business units' performance and has
historically analyzed and reported gross margin information
publicly. Other companies may calculate gross margin in a different
manner.
|
Financial Summary
Highlights
|
|
Key variances for the
three months ended September 30, 2014 included:
|
|
(in thousands,
except per share)
|
|
Pre-tax
Income
|
|
Net
Income
|
|
Earnings
Per Share
|
Third Quarter
of 2013 Reported Results
|
|
$
|
6,795
|
|
|
$
|
3,879
|
|
|
$
|
0.27
|
|
Adjusting for Unusual
Items:
|
|
|
|
|
|
|
|
|
|
Regulatory recovery
of litigation-related costs in 2013
|
|
(1,870)
|
|
|
(1,112)
|
|
|
(0.08)
|
|
Accrual for
additional taxes other than income in 2013
|
|
698
|
|
|
415
|
|
|
0.03
|
|
|
|
(1,172)
|
|
|
(697)
|
|
|
(0.05)
|
|
Increased (Decreased)
Gross Margins:
|
|
|
|
|
|
|
|
|
|
Major Projects (See
Major Projects Highlights table)
|
|
|
|
|
|
|
|
|
|
Service
expansions
|
|
1,213
|
|
|
721
|
|
|
0.05
|
|
Contribution from
Sandpiper
|
|
141
|
|
|
84
|
|
|
0.01
|
|
Other natural gas
growth
|
|
690
|
|
|
410
|
|
|
0.03
|
|
GRIP
|
|
671
|
|
|
399
|
|
|
0.03
|
|
Higher consulting and
product revenues from BravePoint
|
|
581
|
|
|
346
|
|
|
0.02
|
|
Propane wholesale
marketing
|
|
(357)
|
|
|
(212)
|
|
|
(0.01)
|
|
FPU electric interim
rates
|
|
348
|
|
|
207
|
|
|
0.01
|
|
|
|
3,287
|
|
|
1,955
|
|
|
0.14
|
|
Increased Other
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
Higher payroll
costs
|
|
(1,184)
|
|
|
(704)
|
|
|
(0.05)
|
|
Higher depreciation,
amortization, asset removal and property tax costs due to new
capital investments
|
|
(719)
|
|
|
(428)
|
|
|
(0.03)
|
|
Higher facility
maintenance costs
|
|
(380)
|
|
|
(226)
|
|
|
(0.02)
|
|
Higher safety and
related customer communications activities
|
|
(308)
|
|
|
(183)
|
|
|
(0.01)
|
|
Higher accrual for
incentive bonuses
|
|
(301)
|
|
|
(179)
|
|
|
(0.01)
|
|
|
|
(2,892)
|
|
|
(1,720)
|
|
|
(0.12)
|
|
Interest
Charges
|
|
(469)
|
|
|
(279)
|
|
|
(0.02)
|
|
Net Other
Changes
|
|
(284)
|
|
|
42
|
|
|
—
|
|
Third Quarter of 2014
Reported Results
|
|
$
|
5,265
|
|
|
$
|
3,180
|
|
|
$
|
0.22
|
|
Key variances for the
nine months ended September 30, 2014 included:
|
|
(in thousands,
except per share)
|
|
Pre-tax
Income
|
|
Net
Income
|
|
Earnings
Per Share
|
Nine Months Ended
September 30, 2013 Reported Results
|
|
$
|
38,721
|
|
|
$
|
23,104
|
|
|
$
|
1.59
|
|
Adjusting for unusual
items:
|
|
|
|
|
|
|
|
|
|
Weather impact (due
primarily to colder temperatures in 2014)
|
|
2,346
|
|
|
1,400
|
|
|
0.10
|
|
Regulatory recovery
of litigation-related costs in 2013
|
|
(1,494)
|
|
|
(891)
|
|
|
(0.06)
|
|
One-time sales tax
expensed by Sandpiper associated with the acquisition of ESG in
2013
|
|
726
|
|
|
433
|
|
|
0.03
|
|
Accrual for
additional taxes other than income in 2013
|
|
698
|
|
|
416
|
|
|
0.03
|
|
|
|
2,276
|
|
|
1,358
|
|
|
0.10
|
|
Increased Gross
Margins:
|
|
|
|
|
|
|
|
|
|
Major Projects (See
Major Projects Highlights table)
|
|
|
|
|
|
|
|
|
|
Contribution from
Sandpiper
|
|
5,396
|
|
|
3,220
|
|
|
0.22
|
|
Service
expansions
|
|
4,182
|
|
|
2,495
|
|
|
0.17
|
|
GRIP
|
|
1,981
|
|
|
1,182
|
|
|
0.08
|
|
Other natural gas
growth
|
|
1,806
|
|
|
1,078
|
|
|
0.07
|
|
Increased wholesale
propane sales
|
|
1,357
|
|
|
810
|
|
|
0.06
|
|
Higher consulting and
product revenues from BravePoint
|
|
821
|
|
|
490
|
|
|
0.03
|
|
|
|
15,543
|
|
|
9,275
|
|
|
0.63
|
|
Increased Other
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
Higher payroll
costs
|
|
(3,849)
|
|
|
(2,297)
|
|
|
(0.16)
|
|
Expenses from
acquisitions
|
|
(3,068)
|
|
|
(1,831)
|
|
|
(0.13)
|
|
Higher depreciation,
amortization, asset removal costs and property tax costs due to new
capital investments
|
|
(2,381)
|
|
|
(1,421)
|
|
|
(0.10)
|
|
Higher benefits
costs
|
|
(1,768)
|
|
|
(1,055)
|
|
|
(0.07)
|
|
Higher facility
maintenance
|
|
(1,079)
|
|
|
(644)
|
|
|
(0.04)
|
|
Larger accrual for
incentive bonuses
|
|
(971)
|
|
|
(579)
|
|
|
(0.04)
|
|
|
|
(13,116)
|
|
|
(7,827)
|
|
|
(0.54)
|
|
Interest
Charges
|
|
(839)
|
|
|
(501)
|
|
|
(0.03)
|
|
Net Other
Changes
|
|
713
|
|
|
586
|
|
|
0.03
|
|
Nine Months ended
September 30, 2014 Reported Results
|
|
$
|
43,298
|
|
|
$
|
25,995
|
|
|
$
|
1.78
|
|
The following information highlights certain key factors
contributing to the Company's results for the quarter and nine
months ended September 30, 2014:
Major Projects
Acquisition
In May 2013, the Company completed
the purchase of the operating assets of ESG. Approximately
11,000 residential and commercial underground propane distribution
system customers acquired in this transaction are now being served
by Sandpiper under the tariff approved by the Maryland Public
Service Commission ("PSC"). The Company has begun to convert some
of the former ESG customers to natural gas distribution service and
is evaluating the potential conversion of others. This
acquisition was accretive to earnings per share in the first full
year of operations, generating $0.15
in additional earnings per share to the Company. The Company
generated $141,000 and $5.4 million, in additional gross margin from
Sandpiper for the three and nine months ended September 30, 2014, respectively, and incurred
$22,000 and $2.2 million in additional other operating
expenses for the same periods, respectively. Additionally, in the
second quarter of 2013, the Company recorded $726,000 in a one-time sales tax expense
associated with the acquisition of ESG.
Service Expansions
During 2013, Eastern Shore commenced new natural gas
transmission services to local distribution utilities and
industrial customers in Delaware
and Maryland. These new services
generated additional gross margin of $504,000 and $2.5
million for the three and nine months ended September 30, 2014, respectively, compared to the
same periods in 2013.
Eastern Shore also executed a one-year contract with another
industrial customer to provide 50,000 dekatherms per day ("Dts/d")
of additional transmission service from April 2014 to April 2015. This short-term
contract generated $657,000 and
$1.3 million for the three and nine
months ended September 30, 2014, and is expected to generate
$1.9 million and $767,000 of gross margin in 2014 and 2015,
respectively.
In August 2013, Peninsula Pipeline
Company, Inc., the Company's intrastate natural gas transmission
subsidiary, commenced a new firm transportation service in
Florida for an unaffiliated
utility. This new service generated $70,000 and $490,000 in gross margin for the three and nine
months ended September 30, 2014,
respectively, compared to the same periods in 2013.
On October 1, 2014, Eastern Shore
commenced a new service to an industrial customer facility in
Kent County, Delaware. This new
service is expected to generate annual gross margin of
approximately $1.2 million to $1.8
million. During the fourth quarter of 2014, the
Company expects to generate $463,000
in additional gross margin from this new service, which required
construction of new facilities, including approximately 5.5 miles
of pipeline lateral and metering facilities, extending from Eastern
Shore's mainline to the new industrial customer facility.
Future New Service
Eight Flags Energy, LLC ("Eight Flags"), one of the Company's
unregulated energy subsidiaries, is engaged in the development and
construction of a combined heat and power ("CHP'') plant in
Nassau County, Florida. This
CHP plant, which will consist of a natural-gas-fired turbine and
associated electric generator, is designed to generate
approximately 20 megawatts of base load power and will include a
heat recovery system generator capable of providing approximately
75,000 pounds per hour of unfired steam. Eight Flags will
sell the power generated from the CHP plant to FPU for distribution
to its retail electric customers pursuant to a 20-year power
purchase agreement. It will also sell the steam to an industrial
customer pursuant to a separate 20-year contract. FPU and
Peninsula Pipeline Company, the Company's intrastate pipeline
subsidiary, will transport natural gas through their distribution
and transmission systems, respectively, to Eight Flags' plant to
produce power and steam. On a consolidated basis, this project is
expected to generate approximately $7.3
million in annual gross margin, which could fluctuate based
upon various factors, including, but not limited to, the quantity
of steam delivered and the CHP plant's hours of operations.
Construction of the CHP plant and associated transactions are
subject to various conditions, including obtaining necessary
governmental approvals, environmental and regulatory permits and
completion and execution of various agreements. If all conditions
are satisfied, construction of the CHP plant is currently scheduled
to commence in early 2015 with commercial operation expected to
commence in July 2016.
GRIP
In August 2012, the Florida PSC
approved the GRIP, which is designed to recover capital and other
program-related-costs, inclusive of a return on investment, to
replace older pipes in the Company's Florida service territories. The Company
received approval to invest $75.0
million to replace qualifying distribution mains and
services (any material other than coated steel or plastic). Since
the program's inception in August
2012, the Company has invested $35.9
million. During the first nine months of 2014, the
Company invested $16.1 million and
expects to invest an additional $5.4
million during the remainder of 2014. These
investments generated additional gross margin of $671,000 and $2.0
million for the three and nine months ended September 30, 2014, respectively, compared to the
same periods in 2013.
Investing in Growth
The Company has continued to expand its resources and
capabilities to support growth. The Company's Delmarva natural gas
distribution operation has initiated natural gas distribution
expansions in Sussex County,
Delaware, and Worcester and
Cecil Counties in Maryland, which require the construction and
conversion of distribution facilities, as well as the conversion of
residential customers' appliances and equipment. To support this
growth as well as future expansions, our Delmarva natural gas
distribution operation has increased staffing. Resources have also
been added in the Company's corporate shared services departments
to increase the Company's overall capabilities to support sustained
future growth. The additional staffing to support growth increased
payroll expenses of the Company's Regulated Energy segment by
$484,000 and $1.3 million for the three and nine months ended
September 30, 2014, respectively,
compared to the same periods in 2013. The Company expects to
make additional investments in personnel, as needed, to further
develop our capability to capitalize on future growth
opportunities.
Weather and Consumption
Weather was not a significant factor in the third quarter.
However, temperatures on the Delmarva Peninsula and in Florida during the first quarter of 2014 were
significantly colder than the first quarter of 2013, which
positively affected the Company's year-to-date results in
2014. The following tables highlight the heating degree-day
("HDD") and cooling degree-day ("CDD") information for the three
and nine months ended September 30,
2014 and 2013 and the gross margin variance resulting from
weather fluctuations in those periods.
HDD and CDD
Information
|
|
|
|
Three Months
Ended
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
|
|
|
September
30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Variance
|
|
2014
|
|
|
2013
|
|
|
Variance
|
Delmarva
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual HDD
|
89
|
|
|
129
|
|
|
(40)
|
|
|
3,262
|
|
|
3,026
|
|
|
236
|
|
10-Year Average HDD
("Normal")
|
61
|
|
|
46
|
|
|
15
|
|
|
2,893
|
|
|
2,867
|
|
|
26
|
|
Variance from
Normal
|
28
|
|
|
83
|
|
|
|
|
|
369
|
|
|
159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Florida
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual HDD
|
—
|
|
|
—
|
|
|
—
|
|
|
574
|
|
|
487
|
|
|
87
|
|
10-Year Average HDD
("Normal")
|
—
|
|
|
—
|
|
|
—
|
|
|
555
|
|
|
570
|
|
|
(15)
|
|
Variance from
Normal
|
—
|
|
|
—
|
|
|
|
|
|
19
|
|
|
(83)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Florida
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual CDD
|
1,528
|
|
|
1,475
|
|
|
53
|
|
|
2,498
|
|
|
2,421
|
|
|
77
|
|
10-Year Average CDD
("Normal")
|
1,519
|
|
|
1,504
|
|
|
15
|
|
|
2,501
|
|
|
2,490
|
|
|
11
|
|
Variance from
Normal
|
9
|
|
|
(29)
|
|
|
|
|
|
(3)
|
|
|
(69)
|
|
|
|
|
Gross Margin
Variance attributed to Weather
|
|
|
(in
thousands)
|
Q3 2014 vs.
Q3 2013
|
|
Q3 2014 vs.
Normal
|
|
YTD 2014 vs.
YTD 2013
|
|
YTD 2014 vs.
Normal
|
Delmarva
|
|
|
|
|
|
|
|
|
|
|
|
Regulated
Energy
|
$
|
13
|
|
|
$
|
167
|
|
|
$
|
268
|
|
|
$
|
803
|
|
Unregulated
Energy
|
101
|
|
|
(13)
|
|
|
1,629
|
|
|
1,037
|
|
Florida
|
|
|
|
|
|
|
|
|
|
|
|
Regulated
Energy
|
132
|
|
|
38
|
|
|
401
|
|
|
(284)
|
|
Unregulated
Energy
|
—
|
|
|
—
|
|
|
48
|
|
|
81
|
|
Total
|
$
|
246
|
|
|
$
|
192
|
|
|
$
|
2,346
|
|
|
$
|
1,637
|
|
Propane
During 2014, retail propane margins on the Delmarva Peninsula
began to decline to more normal levels as a significant increase in
wholesale prices in late 2013 and early 2014 increased our average
propane inventory cost. This reduced our Delmarva gross
margin by $292,000 and $1.2 million for the three and nine months ended
September 30, 2014, respectively. In Florida, higher retail propane margins as a
result of local market conditions increased gross margin by
$514,000 and $1.2 million for the three and nine months ended
September 30, 2014.
Wholesale propane sales increased, generating additional gross
margin of $71,000 and $1.4 million, for the three and nine months ended
September 30, 2014, respectively, due
primarily to sales to an affiliate of ESG.
Xeron, which benefits from wholesale price volatility by
entering into trading transactions, experienced a
quarter-over-quarter gross margin decrease of $357,000 for the three months ended September 30, 2014 due to lower wholesale price
volatility. On a year-to-date basis, Xeron generated an increase in
gross margin of $572,000, compared to
the same period in 2013. This increase was due to higher wholesale
price volatility, primarily during the winter heating season, which
resulted in increased trading activity and higher profits on
executed trades.
Florida Electric Rate Case
On September 15, 2014, the Florida
PSC approved a settlement agreement between FPU and the Florida
Office of Public Counsel in FPU's base rate case filing, which
provides, among other things, an increase in FPU's annual revenue
requirement of approximately $3.8
million and a rate of common equity return of 10.25 percent
for FPU's electric distribution operation. The new rates will be
effective for all meter reads on or after November 1, 2014. Previously, the Florida
PSC approved interim rate relief, effective for meter readings on
or after August 10, 2014, which
generated $348,000 in additional
gross margin for FPU's electric operation for the quarter and nine
months ended September 30, 2014.
Other Developments
Subsequent to the end of the third quarter of 2014, the Company
completed the sale of BravePoint for approximately $12.0 million in cash. The Company expects
to record a gain of approximately $6.5
million to $7.0 million (approximately $4.0 million after-tax) from this
sale in the fourth quarter of 2014. The Company plans to
reinvest the proceeds from this sale in its regulated and
unregulated energy businesses.
The Company has been working on implementation of a new customer
billing system for its natural gas and electric distribution
operations. As of September 30,
2014, approximately $6.4
million of the cost associated with this implementation
project has been capitalized. The Company is currently
reviewing the status of this project to determine its future
strategy and implementation plan, which include the allocation of
future capital and resources, evaluation of strategic alternatives
and assessment of regulatory recovery with respect to this
project.
Chesapeake
Utilities Corporation and Subsidiaries
Major Projects
Highlights (Unaudited)
|
|
|
Gross Margin for
the Period
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Estimate
|
|
September
30,
|
|
September
30,
|
|
for
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
Acquisition:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ESG acquisition being
served by Sandpiper in Worcester County, Maryland
(1)
|
$
|
1,800
|
|
|
$
|
1,659
|
|
|
$
|
7,594
|
|
|
$
|
2,198
|
|
|
$
|
9,817
|
|
Service
Expansions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
Distribution:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sussex County,
Delaware
|
$
|
121
|
|
|
$
|
136
|
|
|
$
|
480
|
|
|
$
|
491
|
|
|
$
|
694
|
|
Natural Gas
Transmission:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Castle County,
Delaware (2)
|
$
|
657
|
|
|
$
|
173
|
|
|
$
|
1,256
|
|
|
$
|
341
|
|
|
$
|
1,862
|
|
Kent County,
Delaware
|
—
|
|
|
579
|
|
|
—
|
|
|
965
|
|
|
—
|
|
Total
Short-term
|
$
|
657
|
|
|
$
|
752
|
|
|
$
|
1,256
|
|
|
$
|
1,306
|
|
|
$
|
1,862
|
|
Long-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sussex County,
Delaware
|
$
|
431
|
|
|
$
|
345
|
|
|
$
|
1,294
|
|
|
$
|
1,035
|
|
|
$
|
1,725
|
|
New Castle County,
Delaware (3)
|
741
|
|
|
343
|
|
|
2,229
|
|
|
1,035
|
|
|
2,964
|
|
Nassau County,
Florida
|
326
|
|
|
328
|
|
|
981
|
|
|
993
|
|
|
1,300
|
|
Worcester County,
Maryland
|
137
|
|
|
98
|
|
|
411
|
|
|
293
|
|
|
547
|
|
Cecil County,
Maryland
|
287
|
|
|
220
|
|
|
860
|
|
|
661
|
|
|
1,147
|
|
Indian River County,
Florida
|
210
|
|
|
140
|
|
|
630
|
|
|
140
|
|
|
840
|
|
Kent County,
Delaware
|
665
|
|
|
—
|
|
|
1,995
|
|
|
—
|
|
|
3,123
|
|
Total
Long-term
|
$
|
2,797
|
|
|
$
|
1,474
|
|
|
$
|
8,400
|
|
|
$
|
4,157
|
|
|
$
|
11,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Service
Expansions
|
$
|
3,575
|
|
|
$
|
2,362
|
|
|
$
|
10,136
|
|
|
$
|
5,954
|
|
|
$
|
14,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Major
Projects
|
$
|
5,375
|
|
|
$
|
4,021
|
|
|
$
|
17,730
|
|
|
$
|
8,152
|
|
|
$
|
24,019
|
|
|
(1) During
the three months and nine months ended September 30, 2014, we
incurred $22,000 and $2.2 million, respectively, in other operating
expenses related to Sandpiper's operations. We expect to incur a
total of $6.3 million in other operating expenses during
2014.
|
(2)
Expected gross margin in 2014 includes $1.9 million from a new
short-term contract for 50,000 Dts/d for one year, which began in
April 2014.
|
(3) Gross
margin generated from this service expansion replaces the 10,000
Dts/d contract, which expired in November 2012. This expired
contract had annualized gross margin of $1.1 million.
|
The following table
summarizes our future major expansion initiatives and opportunities
with executed contracts (dollars in thousands):
|
|
Project
|
|
Estimated Date of
New Service
|
|
Estimated
Annualized
Margin
|
Eight Flags CHP plant
in Nassau County, Florida
|
|
Third quarter of
2016
|
|
$7.3
million
|
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,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Regulated
Energy
|
$
|
59,356
|
|
|
$
|
55,680
|
|
|
$
|
223,168
|
|
|
$
|
192,463
|
|
Unregulated
Energy
|
27,071
|
|
|
28,262
|
|
|
141,365
|
|
|
119,278
|
|
Other
|
5,192
|
|
|
2,603
|
|
|
13,921
|
|
|
9,678
|
|
Total Operating
Revenues
|
91,619
|
|
|
86,545
|
|
|
378,454
|
|
|
321,419
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Regulated energy cost
of sales
|
23,040
|
|
|
22,591
|
|
|
102,020
|
|
|
86,321
|
|
Unregulated energy
and other cost of sales
|
22,935
|
|
|
21,795
|
|
|
112,702
|
|
|
90,656
|
|
Operations
|
25,365
|
|
|
21,300
|
|
|
76,604
|
|
|
65,878
|
|
Maintenance
|
2,562
|
|
|
2,146
|
|
|
7,168
|
|
|
5,688
|
|
Depreciation and amortization
|
6,774
|
|
|
6,274
|
|
|
20,146
|
|
|
18,071
|
|
Other
taxes
|
3,151
|
|
|
3,719
|
|
|
9,942
|
|
|
10,383
|
|
Total operating
expenses
|
83,827
|
|
|
77,825
|
|
|
328,582
|
|
|
276,997
|
|
Operating
Income
|
7,792
|
|
|
8,720
|
|
|
49,872
|
|
|
44,422
|
|
Other income (loss),
net of other expenses
|
(32)
|
|
|
101
|
|
|
380
|
|
|
413
|
|
Interest
charges
|
2,495
|
|
|
2,026
|
|
|
6,954
|
|
|
6,114
|
|
Income Before
Income Taxes
|
5,265
|
|
|
6,795
|
|
|
43,298
|
|
|
38,721
|
|
Income
taxes
|
2,085
|
|
|
2,916
|
|
|
17,303
|
|
|
15,617
|
|
Net
Income
|
$
|
3,180
|
|
|
$
|
3,879
|
|
|
$
|
25,995
|
|
|
$
|
23,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
14,574,678
|
|
|
14,438,152
|
|
|
14,539,841
|
|
|
14,424,404
|
|
Diluted
|
14,616,665
|
|
|
14,553,501
|
|
|
14,588,130
|
|
|
14,538,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.22
|
|
|
$
|
0.27
|
|
|
$
|
1.79
|
|
|
$
|
1.60
|
|
Diluted
|
$
|
0.22
|
|
|
$
|
0.27
|
|
|
$
|
1.78
|
|
|
$
|
1.59
|
|
Chesapeake
Utilities Corporation and Subsidiaries
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
Assets
|
|
September 30,
2014
|
|
December 31,
2013
|
(in thousands,
except shares)
|
|
|
|
|
|
|
Property,
Plant and Equipment
|
|
|
|
|
|
|
Regulated
energy
|
|
$
|
730,879
|
|
|
$
|
691,522
|
|
Unregulated
energy
|
|
80,500
|
|
|
76,267
|
|
Other
|
|
21,974
|
|
|
21,002
|
|
Total property,
plant and equipment
|
|
833,353
|
|
|
788,791
|
|
Less:
Accumulated depreciation and amortization
|
|
(192,515)
|
|
|
(174,148)
|
|
Plus:
Construction work in progress
|
|
38,611
|
|
|
16,603
|
|
Net property,
plant and equipment
|
|
679,449
|
|
|
631,246
|
|
Current
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
2,285
|
|
|
3,356
|
|
Accounts receivable
(less allowance for uncollectible accounts of $1,282 and $1,635,
respectively)
|
|
43,270
|
|
|
75,293
|
|
Accrued
revenue
|
|
7,629
|
|
|
13,910
|
|
Propane
inventory, at average cost
|
|
7,303
|
|
|
10,456
|
|
Other
inventory, at average cost
|
|
2,991
|
|
|
4,880
|
|
Storage gas
prepayments
|
|
4,990
|
|
|
4,318
|
|
Prepaid
expenses
|
|
7,887
|
|
|
6,910
|
|
Income taxes
receivable
|
|
2,100
|
|
|
2,609
|
|
Mark-to-market
energy assets
|
|
187
|
|
|
385
|
|
Regulatory
assets
|
|
7,790
|
|
|
2,436
|
|
Deferred income
taxes
|
|
1,700
|
|
|
1,696
|
|
Other current
assets
|
|
201
|
|
|
160
|
|
Total current
assets
|
|
88,333
|
|
|
126,409
|
|
Deferred
Charges and Other Assets
|
|
|
|
|
|
|
Investments, at
fair value
|
|
3,481
|
|
|
3,098
|
|
Regulatory
assets
|
|
66,241
|
|
|
66,584
|
|
Goodwill
|
|
4,625
|
|
|
4,354
|
|
Other
intangible assets, net
|
|
2,675
|
|
|
2,975
|
|
Receivables and
other deferred charges
|
|
2,746
|
|
|
2,856
|
|
Total deferred
charges and other assets
|
|
79,768
|
|
|
79,867
|
|
Total
Assets
|
|
$
|
847,550
|
|
|
$
|
837,522
|
|
Chesapeake
Utilities Corporation and Subsidiaries
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
Capitalization and
Liabilities
|
|
September 30,
2014
|
|
December 31,
2013
|
(in thousands,
except shares and per share data)
|
|
|
|
|
|
|
Capitalization
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Common stock,
par value $0.4867 per share
|
|
|
|
|
|
|
(authorized
25,000,000 shares)
|
|
$
|
7,095
|
|
|
$
|
4,691
|
|
Additional
paid-in capital
|
|
155,407
|
|
|
152,341
|
|
Retained
earnings
|
|
136,188
|
|
|
124,274
|
|
Accumulated
other comprehensive loss
|
|
(2,469)
|
|
|
(2,533)
|
|
Deferred
compensation obligation
|
|
1,217
|
|
|
1,124
|
|
Treasury
stock
|
|
(1,217)
|
|
|
(1,124)
|
|
Total
stockholders' equity
|
|
296,221
|
|
|
278,773
|
|
Long-term debt,
net of current maturities
|
|
165,044
|
|
|
117,592
|
|
Total
capitalization
|
|
461,265
|
|
|
396,365
|
|
Current
Liabilities
|
|
|
|
|
|
|
Current portion
of long-term debt
|
|
11,113
|
|
|
11,353
|
|
Short-term
borrowing
|
|
71,169
|
|
|
105,666
|
|
Accounts
payable
|
|
33,371
|
|
|
53,482
|
|
Accrued
compensation
|
|
7,269
|
|
|
8,394
|
|
Accrued
interest
|
|
3,347
|
|
|
1,235
|
|
Dividends
payable
|
|
3,936
|
|
|
3,710
|
|
Mark-to-market
energy liabilities
|
|
141
|
|
|
127
|
|
Regulatory
liabilities
|
|
2,797
|
|
|
4,157
|
|
Customer
deposits and refunds
|
|
24,970
|
|
|
26,140
|
|
Other accrued
liabilities
|
|
10,950
|
|
|
7,678
|
|
Total current
liabilities
|
|
169,063
|
|
|
221,942
|
|
Deferred
Credits and Other Liabilities
|
|
|
|
|
|
|
Deferred income
taxes
|
|
142,507
|
|
|
142,597
|
|
Deferred
investment tax credits
|
|
49
|
|
|
74
|
|
Regulatory
liabilities
|
|
3,772
|
|
|
4,402
|
|
Accrued asset
removal cost - Regulatory liability
|
|
39,851
|
|
|
39,510
|
|
Environmental
liabilities
|
|
9,022
|
|
|
9,155
|
|
Other pension
and benefit costs
|
|
18,246
|
|
|
21,000
|
|
Other
liabilities
|
|
3,775
|
|
|
2,477
|
|
Total deferred
credits and other liabilities
|
|
217,222
|
|
|
219,215
|
|
Total
Capitalization and Liabilities
|
|
$
|
847,550
|
|
|
$
|
837,522
|
|
Chesapeake
Utilities Corporation and Subsidiaries
Distribution
Utility Statistical Data (Unaudited)
|
|
For the Three
Months Ended September 30, 2014
|
|
For the Three
Months Ended September 30, 2013
|
|
Delmarva NG
Distribution(2)
|
Chesapeake Florida
NG Division
|
FPU NG
Distribution
|
FPU Electric
Distribution
|
|
Delmarva NG
Distribution
|
Chesapeake Florida
NG Division
|
FPU NG
Distribution
|
FPU Electric
Distribution
|
Operating
Revenues
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
$
|
5,175
|
|
$
|
1,036
|
|
$
|
4,537
|
|
$
|
13,093
|
|
|
$
|
4,886
|
|
$
|
1,009
|
|
$
|
4,041
|
|
$
|
12,748
|
|
Commercial
|
5,553
|
|
1,010
|
|
6,952
|
|
10,896
|
|
|
5,001
|
|
1,002
|
|
6,456
|
|
11,154
|
|
Industrial
|
1,672
|
|
1,233
|
|
2,567
|
|
478
|
|
|
1,527
|
|
1,181
|
|
2,565
|
|
914
|
|
Other
(1)
|
559
|
|
788
|
|
(358)
|
|
(2,582)
|
|
|
602
|
|
621
|
|
(638)
|
|
(2,845)
|
|
Total Operating
Revenues
|
$
|
12,959
|
|
$
|
4,067
|
|
$
|
13,698
|
|
$
|
21,885
|
|
|
$
|
12,016
|
|
$
|
3,813
|
|
$
|
12,424
|
|
$
|
21,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (in
Dts/MWHs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
174,962
|
|
44,996
|
|
192,663
|
|
95,041
|
|
|
171,171
|
|
53,804
|
|
189,199
|
|
90,415
|
|
Commercial
|
470,647
|
|
290,901
|
|
518,360
|
|
92,455
|
|
|
452,402
|
|
292,554
|
|
534,252
|
|
91,484
|
|
Industrial
|
991,396
|
|
2,830,265
|
|
784,824
|
|
7,090
|
|
|
972,620
|
|
2,818,902
|
|
725,964
|
|
6,400
|
|
Other
|
31,036
|
|
—
|
|
(15,200)
|
|
1,707
|
|
|
27,223
|
|
—
|
|
(25,547)
|
|
2,520
|
|
Total
|
1,668,041
|
|
3,166,162
|
|
1,480,647
|
|
196,293
|
|
|
1,623,416
|
|
3,165,260
|
|
1,423,868
|
|
190,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
61,326
|
|
14,356
|
|
50,691
|
|
23,894
|
|
|
59,884
|
|
13,917
|
|
49,363
|
|
23,771
|
|
Commercial
|
6,453
|
|
1,380
|
|
4,343
|
|
7,411
|
|
|
6,374
|
|
1,303
|
|
4,440
|
|
7,414
|
|
Industrial
|
110
|
|
59
|
|
1,347
|
|
2
|
|
|
114
|
|
60
|
|
1,075
|
|
2
|
|
Other
|
7
|
|
—
|
|
—
|
|
—
|
|
|
6
|
|
—
|
|
—
|
|
—
|
|
Total
|
67,896
|
|
15,795
|
|
56,381
|
|
31,307
|
|
|
66,378
|
|
15,280
|
|
54,878
|
|
31,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended September 30, 2014
|
|
For the Nine
Months Ended September 30, 2013
|
|
Delmarva NG
Distribution(2)
|
Chesapeake Florida
NG Division
|
FPU NG
Distribution
|
FPU Electric
Distribution
|
|
Delmarva NG
Distribution
|
Chesapeake Florida
NG Division
|
FPU NG
Distribution
|
FPU Electric
Distribution
|
Operating
Revenues
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
$
|
51,016
|
|
$
|
3,617
|
|
$
|
18,399
|
|
$
|
33,607
|
|
|
$
|
38,049
|
|
$
|
3,457
|
|
$
|
16,820
|
|
$
|
32,312
|
|
Commercial
|
28,304
|
|
3,312
|
|
24,982
|
|
28,362
|
|
|
20,337
|
|
3,242
|
|
24,654
|
|
29,158
|
|
Industrial
|
4,677
|
|
3,794
|
|
9,354
|
|
2,911
|
|
|
4,565
|
|
3,696
|
|
8,457
|
|
3,304
|
|
Other
(1)
|
(3,122)
|
|
2,362
|
|
(1,746)
|
|
(6,152)
|
|
|
(2,136)
|
|
1,758
|
|
(3,839)
|
|
(6,979)
|
|
Total Operating
Revenues
|
$
|
80,875
|
|
$
|
13,085
|
|
$
|
50,989
|
|
$
|
58,728
|
|
|
$
|
60,815
|
|
$
|
12,153
|
|
$
|
46,092
|
|
$
|
57,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (in
Dts/MWHs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
2,953,300
|
|
254,612
|
|
957,430
|
|
244,631
|
|
|
2,375,274
|
|
252,510
|
|
932,222
|
|
227,046
|
|
Commercial
|
2,851,167
|
|
1,019,970
|
|
1,939,673
|
|
238,878
|
|
|
2,442,563
|
|
1,023,376
|
|
2,071,004
|
|
235,608
|
|
Industrial
|
3,163,735
|
|
9,861,224
|
|
2,930,761
|
|
23,960
|
|
|
2,987,008
|
|
10,455,389
|
|
2,786,936
|
|
23,180
|
|
Other
|
57,088
|
|
—
|
|
(97,953)
|
|
(4,309)
|
|
|
49,972
|
|
—
|
|
(178,441)
|
|
13,809
|
|
Total
|
9,025,290
|
|
11,135,806
|
|
5,729,911
|
|
503,160
|
|
|
7,854,817
|
|
11,731,275
|
|
5,611,721
|
|
499,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
62,028
|
|
14,364
|
|
50,781
|
|
23,868
|
|
|
60,519
|
|
13,950
|
|
49,366
|
|
23,757
|
|
Commercial
|
6,531
|
|
1,363
|
|
4,383
|
|
7,413
|
|
|
6,449
|
|
1,291
|
|
4,514
|
|
7,407
|
|
Industrial
|
109
|
|
60
|
|
1,280
|
|
2
|
|
|
112
|
|
58
|
|
998
|
|
2
|
|
Other
|
7
|
|
—
|
|
—
|
|
—
|
|
|
5
|
|
—
|
|
—
|
|
—
|
|
Total
|
68,675
|
|
15,787
|
|
56,444
|
|
31,283
|
|
|
67,085
|
|
15,299
|
|
54,878
|
|
31,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 for pass-through taxes.
|
(2)
Sandpiper is now included within the Delmarva NG Distribution
results, which also includes the Delaware and Maryland
Divisions.
|
|
SOURCE Chesapeake Utilities Corporation