Chesapeake Utilities raises capital spending targets on new pipeline project
The company increased its 2026 capital expenditure guidance by $100 million to a new range of $550 million to $600 million.
Chesapeake Utilities (CPK) reported second-quarter net income of $25.4 million. The energy provider shifted its long-term financial strategy this quarter, significantly raising capital investment targets to accommodate a new large-scale infrastructure project.
Diluted GAAP earnings per share for the second quarter were $1.05, up from $1.02 in the second quarter of 2025. For the six months ended June 30, 2026, year-to-date adjusted EPS grew 8.0% compared to the prior-year period.
Growth was supported by an increase in adjusted gross margin, which rose $7.4 million in the second quarter and $31.2 million year-to-date. This represented a 9.6% growth rate for the first half of the year.
Revenue gains were driven primarily by the regulated side of the business. Regulated Energy operating revenues rose to $413.6 million for the six months ended June 30, 2026, from $351.4 million in the same period in 2025. Unregulated Energy operating revenues for the same period were $158.9 million, compared to $154.6 million a year earlier.
The company announced the Florida Energy Pathway project, a $1.2 billion natural gas pipeline targeted for service in 2030. To fund this and other growth, Chesapeake Utilities increased its revolving credit facility capacity to $650 million.
These investments led the company to raise its total capital investment projection for the five-year period ended 2028 to more than $2.2 billion, up from a previous range of $1.5 billion to $1.8 billion. Full-year 2026 capital expenditure guidance was also raised by $100 million to a new range of $550 million to $600 million.
Chesapeake Utilities reaffirmed its 2028 earnings guidance of $7.75 to $8.00 per share.