Chesapeake Utilities Locks NextEra Partner for Florida Pipeline

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter net income was $21.6 million, or $0.89 a share, as the company booked $151.2 million of capital spending.

Chesapeake Utilities Corporation (CPK) reported third-quarter net income of $21.6 million, or $0.89 a share, compared with $19.4 million, or $0.82 a share, a year earlier. Adjusted earnings per share were $0.89.

The diversified energy delivery company said adjusted gross margin grew $11.5 million in the quarter, to $148.7 million from $137.2 million a year earlier, driven largely by regulatory initiatives and infrastructure programs, transmission expansion projects, natural gas organic growth, improved contributions from unregulated businesses, and increased customer consumption.

Total operating revenues were $195.8 million, up from $179.6 million a year earlier. Regulated energy revenue was $165.0 million. Unregulated energy revenue was $37.8 million. Operating income was $48.6 million.

The company announced a joint venture with NextEra Energy Resources to finance and own 49 percent of the Florida Energy Pathway project, a $1.2 billion, 97-mile intrastate natural gas transmission line in South Florida. It had announced the project in the second quarter. The September 30 balance sheet showed $7.2 million of investments in the unconsolidated FEP affiliate.

Chair, President and Chief Executive Officer Jeff Householder said the partnership supports a disciplined approach to capital deployment and that the company is positioned to expand natural gas transportation capacity in one of the nation’s fastest-growing regions.

Capital investment was $151.2 million in the third quarter, bringing year-to-date spending to $412.8 million. The company said it remains on track for 2026 capital expenditure guidance of $550 million to $600 million, a range it raised by $100 million in the second quarter. It affirmed that guidance, citing increases in regulated transmission, including initial FEP investments, distribution and infrastructure.

A Florida City Gas interim rate increase of $16.2 million on an annualized basis became effective in July after Florida Public Service Commission approval. The company participated in rate-case hearings in late September and expects a final FCG decision in December.

Adjusted gross margin from major projects and initiatives was $25.6 million in the third quarter, versus $16.8 million a year earlier. Pipeline expansions contributed $8.7 million. Total regulatory initiatives contributed $16.9 million. Key year-over-year adjusted gross-margin variances included rate-case activities of $3.1 million pre-tax, transmission service expansions of $2.9 million, regulated infrastructure programs of $2.8 million, and natural gas growth including conversions of $1.9 million, offset by a $1.8 million absence of Hurricane Michael recovered costs.

The company established a new at-the-market equity offering program of up to $225 million of common stock, including forward sale agreements, to support strategic growth.

It reaffirmed 2028 earnings guidance of $7.75 to $8.00 a share and said it expects total capital investment to exceed $2.2 billion for the five-year period ended 2028. As previously communicated, it expects to provide a long-term guidance update on its Full-Year 2026 earnings call in February 2027, including a capital guidance range and EPS growth rate for 2027 through 2031 as well as 2027 capital expenditure guidance.