DOVER, Del., March 6, 2014 /PRNewswire/ -- Chesapeake
Utilities Corporation (NYSE: CPK) today announced financial results
for both the year and the fourth quarter ended December 31, 2013. The Company's net income
for the year ended December 31, 2013 was $32.8 million, or $3.39 per share. This represents an
increase of $3.9 million, or
$0.40 per share, compared to
2012.
For the fourth quarter of 2013, the Company reported net income
of $9.7 million, or $1.00 per share. This represents a decrease
of $174,000, or $0.02 per share, compared to the same quarter in
2012.
"I am pleased to report that 2013 was the seventh consecutive
year of record earnings for the Company," stated Michael P. McMasters, President and Chief
Executive Officer of Chesapeake Utilities Corporation. "Our
employees continue to work tirelessly to transform opportunities
into profitable growth for the Company, including increased natural
gas service for existing customers, new service to residential,
commercial and industrial customers and several acquisitions that
have further expanded our service offerings and footprint.
All of these factors continued to drive our growth in 2013 and
position our Company for continued growth in the future," Mr.
McMasters noted.
"The combination of growth from our service expansions and
acquisitions, weather that was closer to normal and our propane
operations' strong performance generated significantly improved
financial results. We are continuing our efforts to provide
excellent service to our customers and communities while seeking
out and transforming opportunities into profitable growth.
Toward that end, we made significant investments in 2013 in
resources that have already strengthened our capabilities
company-wide to identify, screen and develop new opportunities
within and beyond our existing geographical and energy footprints,"
Mr. McMasters continued.
"The combination of our employees' continued efforts, increased
organizational capabilities and unwavering commitment to deliver
increased shareholder value have set the stage for 2014 to be
another successful year," Mr. McMasters added.
A more detailed discussion and analysis of the Company's results
for each segment are provided in the following pages.
Operating Results for the Year Ended December 31, 2013 and 2012
The Company reported operating income of $62.7 million for 2013, an increase of
$6.1 million over the prior year.
Gross margin increased by $20.3
million, which was partially offset by an increase of
$14.2 million in other operating
expenses. Acquisitions completed in 2013 contributed
$6.4 million and $5.3 million of gross margin and other operating
expenses, respectively, to the 2013 operating results. The
remaining increase in gross margin was due primarily to: (a)
$3.7 million in natural gas service
expansions; (b) $3.4 million from
more normal seasonal temperatures on the Delmarva Peninsula in
2013; (c) $3.2 million in higher
propane margins; and (d) $1.8 million
in other natural gas growth. The remaining increase in other
operating expenses was due primarily to: (a) $2.4 million in higher payroll and benefits cost
to support recent growth and expand the Company's capabilities for
future growth; (b) $2.0 million in
increased incentive bonuses as a result of the Company's 2013
financial performance and broader participation, which was extended
during 2013 to cover substantially all employees; and (c)
$1.6 million in increased
depreciation and property tax costs associated with new capital
investments.
Regulated Energy
Operating income for the regulated energy segment increased by
$3.1 million to $50.1 million for 2013, compared to 2012.
An increase in gross margin of $11.0
million was partially offset by an increase in other
operating expenses of $7.9 million.
The significant components of the gross margin increase
included:
- $4.4 million generated by
Sandpiper Energy, Inc. ("Sandpiper") after the acquisition of the
operating assets of Eastern Shore Gas Company and its affiliates
("ESG") in late May 2013;
- $3.7 million due to natural gas
service expansions initiated in 2012 and 2013;
- $1.8 million in other natural gas
growth due to increases in the number of residential, commercial
and industrial customers served on the Delmarva Peninsula and in
Florida; and
- $413,000 as a result of increased
consumption by natural gas customers, due primarily to temperatures
in 2013 on the Delmarva Peninsula returning to more normal
levels.
The increase in other operating expenses was due primarily to:
(a) $3.1 million in other operating
expenses associated with Sandpiper's operations; (b) $1.7 million in higher payroll and benefits costs
to support recent growth and expand the Company's capabilities for
future growth; (c) $1.3 million of
increased incentive bonuses as a result of broader participation in
the bonus program, which was extended during 2013 to cover
substantially all employees, and the strong financial performance
in 2013; (d) $1.4 million in higher
depreciation, amortization, asset removal costs and property taxes
associated with capital expenditures to support growth and maintain
system integrity; (e) a one-time sales tax of $726,000 expensed by Sandpiper related to the
acquisition in May 2013; and (f)
$342,000 in increased bad debt
expense. These increases were partially offset by a
$1.5 million recovery of previously
expensed litigation costs related to the Company's franchise in the
City of Marianna, Florida
Unregulated Energy
Operating income for the unregulated energy segment increased by
$4.0 million to $12.4 million for 2013, compared to 2012.
An increase in gross margin of $9.5
million was partially offset by an increase in other
operating expenses of $5.5
million. The significant components of the gross
margin increase included:
- $3.2 million in higher retail
propane margins as the execution of the Company's propane supply
plan on the Delmarva Peninsula resulted in a decrease in the
average cost of propane inventory during 2013 despite an increase
in average wholesale prices in local markets;
- $2.9 million in higher propane
sales due primarily to temperatures on the Delmarva Peninsula
returning to more normal levels and, therefore, resulting in higher
consumption by propane customers, compared to the prior year;
- $2.0 million in additional gross
margin generated from acquisitions completed in 2013; and
- $1.1 million in lower gross
margin generated by Xeron, Inc. ("Xeron"), the Company's propane
wholesale marketing subsidiary, as lower volatility in wholesale
propane prices resulted in lower profit on trading activity during
the first nine months of the year.
The increase in other operating expenses was due primarily to:
(a) $2.2 million in additional
expenses associated with serving newly acquired customers, (b) an
accrual of $990,000 as a contingency
for taxes other than income, and (c) increased incentive bonuses of
$706,000 as a result of the strong
financial performance in 2013.
Other
The "other" segment, which consists primarily of BravePoint, Inc
("BravePoint"), the Company's advanced information services
subsidiary, reported operating income of $297,000 for 2013, compared to $1.3 million in 2012. Gross margin
decreased slightly to $8.3 million
for 2013 from $8.4 million in 2012.
Other operating expenses increased by $835,000 to $8.0
million in 2013, due primarily to BravePoint's higher
payroll and related costs.
Operating Results for the Quarters Ended December 31,
2013 and 2012
The Company's operating income for the quarter ended
December 31, 2013 was $18.3
million, a decrease of $231,000, compared to the same quarter in
2012. Gross margin increased by $5.6
million in the fourth quarter of 2013, compared to the same
quarter in 2012, $2.7 million of
which was related to gross margin generated by acquisitions
completed in 2013. Natural gas growth generated $1.5 million of additional gross margin.
Other operating expenses increased by $5.8
million in the fourth quarter of 2013, compared to the same
quarter in 2012. Included in other operating expenses in the
fourth quarter of 2013 was $2.1
million of additional operating expenses related to
acquisitions completed earlier in the year as well as the increased
costs associated with new capital investments and increased
resources to support recent growth and expand the Company's
capabilities for future growth.
Regulated Energy
Operating income for the regulated energy segment increased by
$68,000 to $13.9 million for the fourth quarter of 2013,
compared to the same quarter in 2012. An increase in gross
margin of $3.7 million was offset by
an increase of $3.6 million in other
operating expenses. The significant components of the gross margin
increase included:
- $2.2 million generated by
Sandpiper, due to the acquisition in May
2013; and
- $1.2 million due to natural gas
service expansions initiated in late 2012 and 2013.
The increase in other operating expenses was due primarily to:
(a) $1.3 million in other operating
expenses associated with Sandpiper's operations; (b) $1.0 million in higher payroll and benefits costs
to support recent growth and expand the Company's capabilities for
future growth; and (c) $881,000 in
higher depreciation expense, amortization, asset removal and
property tax costs associated with capital investments to support
growth and maintain system integrity.
Unregulated Energy
Operating income for the unregulated energy segment for the
fourth quarter of 2013 remained unchanged at $4.3 million, compared to operating income for
the same quarter in 2012. An increase in gross margin of
$2.1 million was offset by an
increase in other operating expenses of $2.1
million. The significant components of the gross
margin increase included:
- $907,000 from increased propane
retail and wholesale sales;
- $434,000 in additional gross
margin generated from acquisitions completed earlier in 2013;
and
- $316,000 in higher gross margin
generated by Xeron due to higher profit on trading activity.
The increase in other operating expenses was due primarily to:
(a) $760,000 in additional expenses
related to acquisitions completed in 2013; (b) $337,000 in increased incentive bonuses as a
result of higher year-to-date financial performance; and (c)
$292,000 in additional taxes other than income accrued during the
quarter.
Other
The "other" segment, which consists primarily of BravePoint,
reported operating income of $56,000
for the fourth quarter of 2013, as compared to $384,000 in the same quarter in 2012. This
decline reflected an $185,000
decrease in gross margin and a $143,000 increase in operating 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.
Unless otherwise noted, earnings per share information is
presented on a diluted basis.
Conference Call
Chesapeake Utilities Corporation will host a conference call on
March 7, 2014 at 10:30 a.m. Eastern Time to discuss the Company's
financial results for the quarter and year ended December 31,
2013. To participate in this call, dial 866.821.5457 and reference
Chesapeake Utilities Corporation's 2013 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.
About Chesapeake Utilities Corporation
Chesapeake Utilities Corporation is a diversified energy company
engaged in natural gas distribution, transmission and marketing,
electric distribution, propane gas distribution and wholesale
marketing, advanced information services and other related
services. Information about Chesapeake's businesses is available at
www.chpk.com.
For more information, contact:
Beth W. Cooper
Senior Vice President & Chief Financial Officer
302.734.6799
Financial
Summary (in thousands, except per-share
data)
|
|
|
|
Year to
Date
|
|
Fourth
Quarter
|
For the Periods
Ended December 31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Gross Margin
(1)
|
|
|
|
|
|
|
|
|
Regulated
Energy
|
|
$
|
145,820
|
|
|
$
|
134,806
|
|
|
$
|
39,678
|
|
|
$
|
35,968
|
|
Unregulated
Energy
|
|
45,375
|
|
|
35,912
|
|
|
13,321
|
|
|
11,235
|
|
Other
|
|
8,276
|
|
|
8,425
|
|
|
2,031
|
|
|
2,216
|
|
Total Gross
Margin
|
|
$
|
199,471
|
|
|
$
|
179,143
|
|
|
$
|
55,030
|
|
|
$
|
49,419
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
Regulated Energy
|
|
$
|
50,084
|
|
|
$
|
46,999
|
|
|
$
|
13,916
|
|
|
$
|
13,848
|
|
Unregulated Energy
|
|
12,353
|
|
|
8,355
|
|
|
4,340
|
|
|
4,311
|
|
Other
|
|
297
|
|
|
1,281
|
|
|
56
|
|
|
384
|
|
Total
Operating Income
|
|
62,734
|
|
|
56,635
|
|
|
18,312
|
|
|
18,543
|
|
|
|
|
|
|
|
|
|
|
Other Income (loss),
net of other expenses
|
|
372
|
|
|
271
|
|
|
(41)
|
|
|
59
|
|
Interest
Charges
|
|
8,234
|
|
|
8,747
|
|
|
2,120
|
|
|
2,090
|
|
Income
Taxes
|
|
22,085
|
|
|
19,296
|
|
|
6,468
|
|
|
6,655
|
|
Net
Income
|
|
$
|
32,787
|
|
|
$
|
28,863
|
|
|
$
|
9,683
|
|
|
$
|
9,857
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
of Common Stock
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.41
|
|
|
$
|
3.01
|
|
|
$
|
1.01
|
|
|
$
|
1.03
|
|
Diluted
|
|
$
|
3.39
|
|
|
$
|
2.99
|
|
|
$
|
1.00
|
|
|
$
|
1.02
|
|
(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 is 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
year ended December 31, 2013 included:
|
|
(in thousands,
except per share)
|
|
Pre-tax
Income
|
|
Net
Income
|
|
Earnings
Per Share
|
Year ended December
31, 2012 Reported Results
|
|
$
|
48,159
|
|
|
$
|
28,863
|
|
|
$
|
2.99
|
|
Adjusting for unusual
items:
|
|
|
|
|
|
|
Weather impact (due
primarily to significantly warmer-than-normal weather
in 2012)
|
|
3,399
|
|
|
2,037
|
|
|
0.21
|
|
Regulatory recovery
of litigation-related costs
|
|
1,494
|
|
|
895
|
|
|
0.09
|
|
Accrual for
additional taxes other than income
|
|
(990)
|
|
|
(593)
|
|
|
(0.06)
|
|
One-time sales tax
expensed by Sandpiper associated with the acquisition
|
|
(726)
|
|
|
(435)
|
|
|
(0.04)
|
|
|
|
3,177
|
|
|
1,904
|
|
|
0.20
|
|
Increased (Decreased)
Gross Margins:
|
|
|
|
|
|
|
Major projects (see
Major Project Highlights table)
|
|
|
|
|
|
|
Contribution from
Sandpiper
|
|
4,432
|
|
|
2,656
|
|
|
0.27
|
|
Service
expansions
|
|
3,710
|
|
|
2,223
|
|
|
0.23
|
|
Higher propane
margins
|
|
3,163
|
|
|
1,896
|
|
|
0.20
|
|
Contribution from
other new acquisitions
|
|
2,016
|
|
|
1,208
|
|
|
0.12
|
|
Other natural gas
growth
|
|
1,824
|
|
|
1,094
|
|
|
0.11
|
|
Propane wholesale
marketing
|
|
(1,137)
|
|
|
(681)
|
|
|
(0.07)
|
|
|
|
14,008
|
|
|
8,396
|
|
|
0.86
|
|
Increased Other
Operating Expenses:
|
|
|
|
|
|
|
Expenses from
acquisitions
|
|
(5,309)
|
|
|
(3,182)
|
|
|
(0.33)
|
|
Higher payroll and
benefits costs
|
|
(2,407)
|
|
|
(1,443)
|
|
|
(0.15)
|
|
Increased incentive
bonuses
|
|
(2,002)
|
|
|
(1,200)
|
|
|
(0.12)
|
|
Higher depreciation,
asset removal and property tax costs due to new capital
investments
|
|
(1,555)
|
|
|
(932)
|
|
|
(0.10)
|
|
|
|
(11,273)
|
|
|
(6,757)
|
|
|
(0.70)
|
|
Net Other
Changes
|
|
801
|
|
|
381
|
|
|
0.04
|
|
Year ended December
31, 2013 Reported Results
|
|
$
|
54,872
|
|
|
$
|
32,787
|
|
|
$
|
3.39
|
|
Key variances for the quarter ended December 31, 2013
included:
(in thousands,
except per share)
|
|
Pre-tax
Income
|
|
Net
Income
|
|
Earnings
Per Share
|
Fourth Quarter of
2012 Reported Results
|
|
$
|
16,512
|
|
|
$
|
9,857
|
|
|
$
|
1.02
|
|
Adjusting for unusual
items:
|
|
|
|
|
|
|
Accrual for
additional taxes other than income
|
|
(292)
|
|
|
(174)
|
|
|
(0.02)
|
|
Weather impact (due
primarily to significantly warmer-than-normal weather
in 2012)
|
|
(128)
|
|
|
(77)
|
|
|
(0.01)
|
|
|
|
(420)
|
|
|
(251)
|
|
|
(0.03)
|
|
Increased Gross
Margins:
|
|
|
|
|
|
|
Major projects (see
Major Project Highlights table)
|
|
|
|
|
|
|
Contribution from
Sandpiper
|
|
2,234
|
|
|
1,334
|
|
|
0.14
|
|
Service expansions
|
|
1,210
|
|
|
722
|
|
|
0.07
|
|
Contribution from
other new acquisitions
|
|
461
|
|
|
275
|
|
|
0.03
|
|
Other natural gas
growth
|
|
380
|
|
|
227
|
|
|
0.02
|
|
Propane wholesale
marketing
|
|
316
|
|
|
189
|
|
|
0.02
|
|
|
|
4,601
|
|
|
2,747
|
|
|
0.28
|
|
Increased Other
Operating Expenses:
|
|
|
|
|
|
|
Expenses from
acquisitions
|
|
(2,123)
|
|
|
(1,267)
|
|
|
(0.13)
|
|
Higher payroll and
benefits costs
|
|
(1,016)
|
|
|
(606)
|
|
|
(0.06)
|
|
Increased incentive
bonuses
|
|
(739)
|
|
|
(441)
|
|
|
(0.05)
|
|
Higher depreciation,
asset removal and property tax costs due to new capital
investments
|
|
(844)
|
|
|
(503)
|
|
|
(0.05)
|
|
|
|
(4,722)
|
|
|
(2,817)
|
|
|
(0.29)
|
|
Net Other
Changes
|
|
180
|
|
|
147
|
|
|
0.02
|
|
Fourth Quarter of
2013 Reported Results
|
|
$
|
16,151
|
|
|
$
|
9,683
|
|
|
$
|
1.00
|
|
The following information highlights certain key factors
contributing to the Company's results for the quarter and year
ended December 31, 2013:
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 PSC.
The Company is evaluating the potential conversion of some of these
propane systems to natural gas. This acquisition is expected
to be accretive to earnings per share in the first full year of
operations. The Company generated $2.2
million in additional gross margin and incurred $1.3 million in other operating expenses in the
fourth quarter of 2013. For the year ended December 31, 2013, the Company generated
$4.4 million in additional gross
margin and incurred $3.1 million in
other operating expenses.
Service Expansions
The Company expanded its natural gas transmission and
distribution services in Sussex County,
Delaware; Cecil and
Worcester Counties, Maryland; and Nassau and Indian
River Counties, Florida
during 2012 and 2013, which generated additional gross margin of
$1.5 million in 2013. The same
service expansions generated additional gross margin of
$284,000 in the fourth quarter of
2013, compared to the same quarter in
2012.
In May 2013, Eastern Shore Natural
Gas Company ("Eastern Shore"), the Company's interstate natural gas
transmission subsidiary, commenced new short-term transmission
services to industrial customers located in New Castle and Kent Counties, Delaware. Eastern Shore
provided these services from May to October
2013 using existing system capacity under short-term
contracts and generated additional gross margin of $1.4 million in 2013 ($237,000 in the fourth quarter of 2013). Eastern
Shore also provided increased interruptible service to one of these
industrial customers during 2013, which generated $333,000 of additional gross margin. In
November 2013, Eastern Shore
completed construction of new facilities and replaced these
short-term contracts with long-term service contracts, which
generated additional gross margin of $702,000 in 2013. The Company expects these
long-term services will generate $4.3
million of annual gross margin. These long-term
contracts displace the gross margin generated from short-term
contracts, increased interruptible service and an annualized gross
margin of $1.1 million from an older
contract, which expired in November
2012.
Other Natural Gas Growth
In addition to these service expansions, the natural gas
distribution operations on the Delmarva Peninsula and in
Florida generated $556,000 and $2.0
million in additional gross margin in the quarter and year
ended December 31, 2013, respectively, compared to the same
periods in 2012, due to increases in the number of residential,
commercial and industrial customers served. These increases are due
primarily to a two-percent increase in residential customers on the
Delmarva Peninsula, excluding customers added as a part of the
Sandpiper acquisition, and an increase in commercial and industrial
customers in Florida.
Future Service Expansion Initiatives
In June 2013, Eastern Shore filed
an application with the Federal Energy Regulatory Commission
("FERC"), seeking approval to construct a pipeline lateral to an
industrial customer facility under construction in Kent County, Delaware. Upon completion
of construction of the required facilities, this new service is
expected to generate annual gross margin of approximately
$1.2 million to $1.8 million.
The new facilities include approximately 5.5 miles of lateral
pipeline and metering facilities and extend from Eastern Shore's
mainline to this new industrial customer facility. The
construction of this lateral will not increase the overall capacity
of Eastern Shore's mainline system. Service is projected to
commence in January 2015.
Eastern Shore also executed a one-year contract with another
industrial customer to provide additional 50,000 Dts/d of capacity
from April 2014 to April 2015.
This short-term contract is expected to generate $1.9 million and $767,000 of gross margin in 2014 and 2015,
respectively.
Investing in Growth
The Company continues to expand its resources and capabilities
to support growth. The Company's Delmarva natural gas distribution
operation is in the early stages of natural gas distribution
expansions in Sussex County,
Delaware, and Worcester and
Cecil Counties, Maryland. These expansions will require not
only the construction or conversion of distribution facilities, but
also the conversion of residential customers' appliances or
equipment. The Company has begun the process of reorganizing
our Delmarva natural gas distribution operation and expects to
increase staffing to support future expansions. Eastern Shore
recently completed construction of new facilities to provide
additional services to industrial customers on the Delmarva
Peninsula and is working on constructing a new lateral pipeline to
provide service to a new industrial customer facility in
Kent County, Delaware. Eastern
Shore is also developing other opportunities to further expand its
transmission system, and it also expects to increase its staffing
as it continues to expand its facilities and service. Finally, to
increase the Company's overall capabilities to move growth
initiatives forward and to assist in developing additional
strategic initiatives for sustained future growth, resources have
been added in the Company's corporate shared services
departments. During 2013, the Company's payroll and benefits
expense increased by $2.4 million, or
six percent, compared to 2012 (an increase of $1.0 million, or nine percent, in the fourth
quarter of 2013, compared to the same quarter in 2012). The Company
expects to make additional investments in human resources, as
needed, to further develop its capability to capitalize on future
growth opportunities.
Weather and Consumption
Weather was a significant factor in 2013 as temperatures on the
Delmarva Peninsula returned to more normal levels from historically
warm weather in 2012. The temperatures in Florida continued to be significantly warmer
in 2013. The following tables highlight the heating
degree-day ("HDD") and cooling degree-day ("CDD") information for
the quarter and year ended December 31, 2013 and 2012 and the
gross margin variance resulting from weather fluctuations in those
periods.
|
Year to
Date
|
|
Fourth
Quarter
|
For the Periods
Ended December 31,
|
2013
|
|
2012
|
|
Variance
from
prior
year
|
|
Q4
2013
|
|
Q4
2012
|
|
Variance
from
prior
year
|
Delmarva
|
|
|
|
|
|
|
|
|
|
|
|
Actual HDD
|
4,638
|
|
|
3,936
|
|
|
702
|
|
|
1,612
|
|
|
1,561
|
|
|
51
|
|
10-Year Average HDD
("Normal")
|
4,454
|
|
|
4,491
|
|
|
(37)
|
|
|
1,582
|
|
|
1,594
|
|
|
(12)
|
|
Variance from
Normal
|
184
|
|
|
(555)
|
|
|
|
|
30
|
|
|
(33)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Florida
|
|
|
|
|
|
|
|
|
|
|
|
Actual HDD
|
671
|
|
|
633
|
|
|
38
|
|
|
184
|
|
|
286
|
|
|
(102)
|
|
10-Year Average HDD
("Normal")
|
885
|
|
|
915
|
|
|
(30)
|
|
|
316
|
|
|
327
|
|
|
(11)
|
|
Variance from
Normal
|
(214)
|
|
|
(282)
|
|
|
|
|
(132)
|
|
|
(41)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Florida
|
|
|
|
|
|
|
|
|
|
|
|
Actual CDD
|
2,750
|
|
|
2,871
|
|
|
(121)
|
|
|
329
|
|
|
249
|
|
|
80
|
|
10-Year Average CDD
("Normal")
|
2,750
|
|
|
2,756
|
|
|
(6)
|
|
|
260
|
|
|
270
|
|
|
(10)
|
|
Variance from
Normal
|
—
|
|
|
115
|
|
|
|
|
69
|
|
|
(21)
|
|
|
|
Gross Margin
Variance attributed to Weather
|
|
(in
thousands)
|
Year to
Date
|
|
Fourth
Quarter
|
For the Periods
Ended December 31,
|
2013 vs.
2012
|
|
2013 vs.
Normal
|
|
2013 vs.
2012
|
|
2013 vs.
Normal
|
Delmarva
|
|
|
|
|
|
|
|
Regulated
Energy
|
$
|
984
|
|
|
$
|
493
|
|
|
$
|
143
|
|
|
$
|
151
|
|
Unregulated
Energy
|
3,069
|
|
|
260
|
|
|
390
|
|
|
230
|
|
Florida
|
|
|
|
|
|
|
|
Regulated
Energy
|
(571)
|
|
|
(1,204)
|
|
|
(323)
|
|
|
(167)
|
|
Unregulated
Energy
|
(83)
|
|
|
(316)
|
|
|
(338)
|
|
|
(316)
|
|
Total
|
$
|
3,399
|
|
|
$
|
(767)
|
|
|
$
|
(128)
|
|
|
$
|
(102)
|
|
Propane Prices
Strong retail propane margins throughout 2013 on the Delmarva
Peninsula generated $3.2 million in
additional gross margin. During the first three quarters of
2013, the Company's average propane inventory costs decreased by 25
percent as a result of lower propane wholesale prices in late 2012
and early 2013, coupled with the execution of the Company's supply
plan. This decline in propane costs considerably outpaced a slight
decline in retail prices, which were influenced by propane
wholesale prices in the local area and other market
conditions. The combination of declining costs and sustaining
retail prices resulted in higher retail margins during the first
three quarters of 2013, compared to the same period in 2012.
During the fourth quarter of 2013, average propane wholesale prices
in the local area increased by $0.49
per gallon, or 38 percent, as demand for propane significantly
increased. In executing its supply plan, the Company
benefited from supply diversity and was able to: (a) reduce the
impact of this price increase on its average propane inventory
cost, and (b) limit the increase in retail prices to its customers,
charging considerably less than the wholesale price increase in the
local area. As a result, the Company's retail margins did not
increase during the fourth quarter of 2013 and did not result in a
significant gross margin variance, compared to last year's fourth
quarter. Propane retail sales prices are subject to various
market conditions, including competition with other propane
suppliers as well as the availability and price of alternative
energy sources, and may fluctuate based on changes in demand,
supply and other energy commodity prices. The level of retail
margins sustained during 2013 is not typical and, therefore, is not
included in the Company's long-term financial plans or
forecasts.
Xeron benefits from price volatility in the propane wholesale
market by entering into trading transactions. Xeron
experienced a decrease in gross margin of $1.1 million for the year ended December 31,
2013, compared to the same period in 2012, as lower propane
wholesale price volatility during the current period resulted in
lower profit on executed trades. For the quarter ended
December 31, 2013, Xeron's gross margin increased by
$316,000, compared to the same
quarter in 2012, as higher price volatility in the wholesale market
provided opportunities to profit in the fourth quarter of 2013.
Chesapeake
Utilities Corporation and Subsidiaries
Major Project
Highlights (Unaudited)
|
Major Projects
Initiated (dollars in thousands):
|
|
|
|
|
|
|
Annual Gross
Margin
|
|
Quarterly Gross
Margin
|
Project
|
|
2012
|
|
2013
|
|
2014
(1)
|
|
Q4
2012
|
|
Q4
2013
|
Acquisition:
|
|
|
|
|
|
|
|
|
|
|
ESG acquisition being
served by Sandpiper in
Worcester County,
Maryland (2)
|
|
$
|
—
|
|
|
$
|
4,432
|
|
|
$
|
9,817
|
|
|
$
|
—
|
|
|
$
|
2,234
|
|
Service
Expansions
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
Distribution:
|
|
|
|
|
|
|
|
|
|
|
Long-term
|
|
|
|
|
|
|
|
|
|
|
Sussex County,
Delaware
|
|
$
|
590
|
|
|
$
|
670
|
|
|
$
|
694
|
|
|
$
|
193
|
|
|
$
|
179
|
|
Natural Gas
Transmission:
|
|
|
|
|
|
|
|
|
|
|
Short-term
|
|
|
|
|
|
|
|
|
|
|
New Castle County,
Delaware (3) (4) (5)
|
|
$
|
868
|
|
|
$
|
398
|
|
|
$
|
1,862
|
|
|
$
|
111
|
|
|
$
|
58
|
|
Kent County, Delaware
(3)
|
|
—
|
|
|
1,158
|
|
|
—
|
|
|
—
|
|
|
193
|
|
Total
Short-term
|
|
$
|
868
|
|
|
$
|
1,556
|
|
|
$
|
1,862
|
|
|
$
|
111
|
|
|
$
|
251
|
|
Long-term
|
|
|
|
|
|
|
|
|
|
|
Sussex County,
Delaware
|
|
$
|
1,269
|
|
|
$
|
1,437
|
|
|
$
|
1,725
|
|
|
$
|
345
|
|
|
$
|
402
|
|
New Castle County,
Delaware (6)
|
|
530
|
|
|
1,637
|
|
|
2,964
|
|
|
259
|
|
|
608
|
|
Nassau County,
Florida
|
|
1,540
|
|
|
1,314
|
|
|
1,300
|
|
|
481
|
|
|
321
|
|
Worcester County,
Maryland
|
|
90
|
|
|
417
|
|
|
547
|
|
|
51
|
|
|
124
|
|
Cecil County,
Maryland
|
|
147
|
|
|
926
|
|
|
1,147
|
|
|
147
|
|
|
265
|
|
Indian River,
Florida
|
|
—
|
|
|
350
|
|
|
840
|
|
|
—
|
|
|
210
|
|
Kent County,
Delaware
|
|
—
|
|
|
437
|
|
|
2,660
|
|
|
—
|
|
|
437
|
|
Total
Long-term
|
|
$
|
3,576
|
|
|
$
|
6,518
|
|
|
$
|
11,183
|
|
|
$
|
1,283
|
|
|
$
|
2,367
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Service
Expansions
|
|
$
|
5,034
|
|
|
$
|
8,744
|
|
|
$
|
13,739
|
|
|
$
|
1,587
|
|
|
$
|
2,797
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Major
Projects
|
|
$
|
5,034
|
|
|
$
|
13,176
|
|
|
$
|
23,556
|
|
|
$
|
1,587
|
|
|
$
|
5,031
|
|
(1) The figures provided represent the estimated
annual gross margin.
(2) During 2013, we incurred $3.1 million in other operating expenses related
to Sandpiper's operation. We expect to incur $6.3 million in other operating expenses in
2014.
(3) Prior to commencing new long-term service using
new facilities, we provided a short-term service utilizing the
existing system capacity. The short-term service was displaced by
the new long-term service.
(4) In addition to providing a short-term service, we
also provided interruptible service during 2013, which generated
$989,000. Gross margin generated from
interruptible service is expected to be displaced by the long-term
service starting in November
2013.
(5) Expected gross margin in 2014 includes
$1.9 million from a new short-term
contract for 50,000 Dts/d for one year, which is expected to begin
in April 2014.
(6) 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.
|
Upcoming Major
Projects with Executed Contracts (dollars in
thousands):
|
|
|
|
|
|
|
|
Project
|
|
Estimated Date of
New
Service
|
|
Estimated
2014
Margin
|
|
Estimated
Annualized
Margin
|
Short-term Natural
Gas Transmission Service in New Castle
County,
Delaware
|
|
From Apr-14 to
Apr-15
|
|
$1,860
|
|
$2,629
|
Long-term Natural Gas
Transmission Service in Kent
County, Delaware
(1)
|
|
Starting in
Jan-15
|
|
$—
|
|
$1,200 to
$1,800
|
(1) The estimated gross margin is based upon the
precedent agreement entered into by the parties for these services.
A firm transportation service agreement will be entered into by the
parties upon satisfying certain conditions. The construction
of this lateral will not increase the overall capacity of the
Company's mainline system.
Chesapeake
Utilities Corporation and Subsidiaries
Condensed
Consolidated Statements of Income (Unaudited)
For the Periods
Ended December 31, 2013 and 2012
(in thousands,
except shares and per share data)
|
|
|
Year to
Date
|
Fourth
Quarter
|
|
|
2013
|
|
2012
|
2013
|
|
2012
|
Operating
Revenues
|
|
|
|
|
|
|
|
Regulated
Energy
|
|
$
|
264,637
|
|
|
$
|
246,208
|
|
$
|
72,174
|
|
|
$
|
66,163
|
|
Unregulated
Energy
|
|
166,723
|
|
|
133,049
|
|
47,445
|
|
|
39,726
|
|
Other
|
|
12,946
|
|
|
13,245
|
|
3,268
|
|
|
3,627
|
|
Total Operating
Revenues
|
|
444,306
|
|
|
392,502
|
|
122,887
|
|
|
109,516
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Regulated energy cost
of sales
|
|
118,818
|
|
|
111,402
|
|
32,497
|
|
|
30,195
|
|
Unregulated energy
and other cost of sales
|
|
126,017
|
|
|
101,957
|
|
35,360
|
|
|
29,902
|
|
Operations
|
|
91,452
|
|
|
82,387
|
|
25,576
|
|
|
21,555
|
|
Maintenance
|
|
7,509
|
|
|
7,423
|
|
1,821
|
|
|
1,788
|
|
Depreciation and amortization
|
|
23,965
|
|
|
22,510
|
|
5,894
|
|
|
5,098
|
|
Other
taxes
|
|
13,811
|
|
|
10,188
|
|
3,427
|
|
|
2,435
|
|
Total operating
expenses
|
|
381,572
|
|
|
335,867
|
|
104,575
|
|
|
90,973
|
|
Operating
Income
|
|
62,734
|
|
|
56,635
|
|
18,312
|
|
|
18,543
|
|
Other income (loss),
net of other expenses
|
|
372
|
|
|
271
|
|
(41)
|
|
|
59
|
|
Interest
charges
|
|
8,234
|
|
|
8,747
|
|
2,120
|
|
|
2,090
|
|
Income Before
Income Taxes
|
|
54,872
|
|
|
48,159
|
|
16,151
|
|
|
16,512
|
|
Income
taxes
|
|
22,085
|
|
|
19,296
|
|
6,468
|
|
|
6,655
|
|
Net
Income
|
|
$
|
32,787
|
|
|
$
|
28,863
|
|
$
|
9,683
|
|
|
$
|
9,857
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
9,620,641
|
|
|
9,586,144
|
|
9,633,615
|
|
|
9,594,567
|
|
Diluted
|
|
9,695,630
|
|
|
9,671,507
|
|
9,705,420
|
|
|
9,678,771
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.41
|
|
|
$
|
3.01
|
|
$
|
1.01
|
|
|
$
|
1.03
|
|
Diluted
|
|
$
|
3.39
|
|
|
$
|
2.99
|
|
$
|
1.00
|
|
|
$
|
1.02
|
|
Chesapeake
Utilities Corporation and Subsidiaries
Consolidated
Balance Sheets (Unaudited)
|
|
|
As of December
31,
|
Assets
|
|
2013
|
|
2012
|
(in thousands,
except shares and per share data)
|
|
|
|
|
Property,
Plant and Equipment
|
|
|
|
|
Regulated
energy
|
|
$
|
691,522
|
|
|
$
|
585,429
|
|
Unregulated
energy
|
|
76,267
|
|
|
70,218
|
|
Other
|
|
21,002
|
|
|
20,067
|
|
Total property,
plant and equipment
|
|
788,791
|
|
|
675,714
|
|
Less:
Accumulated depreciation and amortization
|
|
(174,148)
|
|
|
(155,378)
|
|
Plus:
Construction work in progress
|
|
16,603
|
|
|
21,445
|
|
Net property,
plant and equipment
|
|
631,246
|
|
|
541,781
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
|
3,356
|
|
|
3,361
|
|
Accounts receivable
(less allowance for uncollectible
accounts of $1,635
and $826, respectively)
|
|
75,293
|
|
|
53,787
|
|
Accrued
revenue
|
|
13,910
|
|
|
11,688
|
|
Propane
inventory, at average cost
|
|
10,456
|
|
|
7,612
|
|
Other
inventory, at average cost
|
|
4,880
|
|
|
5,841
|
|
Regulatory
assets
|
|
2,436
|
|
|
2,736
|
|
Storage gas
prepayments
|
|
4,318
|
|
|
3,716
|
|
Income taxes
receivable
|
|
2,609
|
|
|
4,703
|
|
Deferred income
taxes
|
|
1,696
|
|
|
791
|
|
Prepaid
expenses
|
|
6,910
|
|
|
6,020
|
|
Mark-to-market
energy assets
|
|
385
|
|
|
210
|
|
Other current
assets
|
|
160
|
|
|
132
|
|
Total current
assets
|
|
126,409
|
|
|
100,597
|
|
Deferred
Charges and Other Assets
|
|
|
|
|
Goodwill
|
|
4,354
|
|
|
4,090
|
|
Other
intangible assets, net
|
|
2,975
|
|
|
2,798
|
|
Investments, at
fair value
|
|
3,098
|
|
|
4,168
|
|
Regulatory
assets
|
|
66,584
|
|
|
77,408
|
|
Receivables and
other deferred charges
|
|
2,856
|
|
|
2,904
|
|
Total deferred
charges and other assets
|
|
79,867
|
|
|
91,368
|
|
Total
Assets
|
|
$
|
837,522
|
|
|
$
|
733,746
|
|
Chesapeake
Utilities Corporation and Subsidiaries
Consolidated
Balance Sheets (Unaudited)
|
|
|
As of December
31,
|
Capitalization and
Liabilities
|
|
2013
|
|
2012
|
(in thousands,
except shares and per share data)
|
|
|
|
|
Capitalization
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock,
par value $0.4867 per share
|
|
|
|
|
(authorized
25,000,000 shares)
|
|
$
|
4,691
|
|
|
$
|
4,671
|
|
Additional
paid-in capital
|
|
152,341
|
|
|
150,750
|
|
Retained
earnings
|
|
124,274
|
|
|
106,239
|
|
Accumulated
other comprehensive loss
|
|
(2,533)
|
|
|
(5,062)
|
|
Deferred
compensation obligation
|
|
1,124
|
|
|
982
|
|
Treasury
stock
|
|
(1,124)
|
|
|
(982)
|
|
Total
stockholders' equity
|
|
278,773
|
|
|
256,598
|
|
Long-term debt,
net of current maturities
|
|
117,592
|
|
|
101,907
|
|
Total
capitalization
|
|
396,365
|
|
|
358,505
|
|
Current
Liabilities
|
|
|
|
|
Current portion
of long-term debt
|
|
11,353
|
|
|
8,196
|
|
Short-term
borrowing
|
|
105,666
|
|
|
61,199
|
|
Accounts
payable
|
|
53,482
|
|
|
41,992
|
|
Customer
deposits and refunds
|
|
26,140
|
|
|
29,271
|
|
Accrued
interest
|
|
1,235
|
|
|
1,437
|
|
Dividends
payable
|
|
3,710
|
|
|
3,502
|
|
Accrued
compensation
|
|
8,394
|
|
|
7,435
|
|
Regulatory
liabilities
|
|
4,157
|
|
|
1,577
|
|
Mark-to-market
energy liabilities
|
|
127
|
|
|
331
|
|
Other accrued
liabilities
|
|
7,678
|
|
|
7,226
|
|
Total current
liabilities
|
|
221,942
|
|
|
162,166
|
|
Deferred
Credits and Other Liabilities
|
|
|
|
|
Deferred income
taxes
|
|
142,597
|
|
|
125,205
|
|
Deferred
investment tax credits
|
|
74
|
|
|
113
|
|
Regulatory
liabilities
|
|
4,402
|
|
|
5,454
|
|
Environmental
liabilities
|
|
9,155
|
|
|
9,114
|
|
Other pension
and benefit costs
|
|
21,000
|
|
|
33,535
|
|
Accrued asset
removal cost - Regulatory liability
|
39,510
|
|
|
38,096
|
|
Other
liabilities
|
|
2,477
|
|
|
1,558
|
|
Total deferred
credits and other liabilities
|
|
219,215
|
|
|
213,075
|
|
Total
Capitalization and Liabilities
|
|
$
|
837,522
|
|
|
$
|
733,746
|
|
Chesapeake
Utilities Corporation and Subsidiaries
Distribution
Utility Statistical Data (Unaudited)
|
|
For the Three
Months Ended December 31, 2013
|
|
For the Three
Months Ended December 31, 2012
|
|
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
|
$
|
14,545
|
|
$
|
1,119
|
|
$
|
5,147
|
|
$
|
9,037
|
|
|
$
|
11,455
|
|
$
|
1,137
|
|
$
|
5,335
|
|
$
|
9,682
|
|
Commercial
|
8,108
|
|
1,090
|
|
7,605
|
|
9,271
|
|
|
5,180
|
|
1,050
|
|
7,031
|
|
9,689
|
|
Industrial
|
1,785
|
|
1,223
|
|
2,822
|
|
785
|
|
|
1,613
|
|
1,184
|
|
3,182
|
|
909
|
|
Other
(1)
|
4,004
|
|
417
|
|
1,109
|
|
(1,938)
|
|
|
2,936
|
|
602
|
|
1,712
|
|
(1,676)
|
|
Total
Operating
Revenues
|
$
|
28,442
|
|
$
|
3,849
|
|
$
|
16,683
|
|
$
|
17,155
|
|
|
$
|
21,184
|
|
$
|
3,973
|
|
$
|
17,260
|
|
$
|
18,604
|
|
|
|
|
|
|
|
|
|
|
|
Volume (in Dts
for natural gas and MWHs for electric)
|
|
|
|
|
|
|
Residential
|
813,727
|
|
72,363
|
|
285,637
|
|
62,699
|
|
|
706,773
|
|
83,800
|
|
323,942
|
|
69,390
|
|
Commercial
|
936,143
|
|
347,032
|
|
672,818
|
|
74,205
|
|
|
811,306
|
|
362,627
|
|
738,894
|
|
80,379
|
|
Industrial
|
1,182,605
|
|
2,999,359
|
|
920,811
|
|
7,940
|
|
|
1,106,856
|
|
3,434,638
|
|
1,023,992
|
|
7,930
|
|
Other
|
19,119
|
|
—
|
|
96,718
|
|
4,538
|
|
|
32,696
|
|
—
|
|
120,331
|
|
(10,855)
|
|
Total
|
2,951,594
|
|
3,418,754
|
|
1,975,984
|
|
149,382
|
|
|
2,657,631
|
|
3,881,065
|
|
2,207,159
|
|
146,844
|
|
|
|
|
|
|
|
|
|
|
|
Average
Customers
|
|
|
|
|
|
|
|
|
Residential
|
61,170
|
|
14,027
|
|
50,114
|
|
23,697
|
|
|
50,009
|
|
13,813
|
|
48,782
|
|
23,690
|
|
Commercial
|
6,451
|
|
1,323
|
|
4,544
|
|
7,405
|
|
|
5,230
|
|
1,265
|
|
4,510
|
|
7,391
|
|
Industrial
|
108
|
|
60
|
|
1,047
|
|
2
|
|
|
102
|
|
60
|
|
898
|
|
2
|
|
Other
|
6
|
|
—
|
|
—
|
|
—
|
|
|
4
|
|
—
|
|
—
|
|
—
|
|
Total
|
67,735
|
|
15,410
|
|
55,705
|
|
31,104
|
|
|
55,345
|
|
15,138
|
|
54,190
|
|
31,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31, 2013
|
|
For the Year Ended
December 31, 2012
|
|
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
|
$
|
52,594
|
|
$
|
4,576
|
|
$
|
21,967
|
|
$
|
41,349
|
|
|
$
|
42,452
|
|
$
|
4,453
|
|
$
|
20,125
|
|
$
|
40,814
|
|
Commercial
|
28,445
|
|
4,332
|
|
32,259
|
|
38,430
|
|
|
19,250
|
|
3,955
|
|
27,376
|
|
38,079
|
|
Industrial
|
6,349
|
|
4,919
|
|
11,278
|
|
4,088
|
|
|
5,648
|
|
4,834
|
|
11,063
|
|
7,513
|
|
Other
(1)
|
1,869
|
|
2,175
|
|
(2,730)
|
|
(8,917)
|
|
|
886
|
|
2,446
|
|
1,115
|
|
(3,845)
|
|
Total
Operating
Revenues
|
$
|
89,257
|
|
$
|
16,002
|
|
$
|
62,774
|
|
$
|
74,950
|
|
|
$
|
68,236
|
|
$
|
15,688
|
|
$
|
59,679
|
|
$
|
82,561
|
|
|
|
|
|
|
|
|
|
|
|
Volume (in Dts
for natural gas and MWHs for electric)
|
|
|
|
|
|
|
Residential
|
3,189,000
|
|
324,873
|
|
1,217,859
|
|
289,745
|
|
|
2,511,444
|
|
313,695
|
|
1,218,539
|
|
292,981
|
|
Commercial
|
3,378,707
|
|
1,370,408
|
|
2,762,780
|
|
309,813
|
|
|
2,717,673
|
|
1,334,229
|
|
2,806,208
|
|
310,004
|
|
Industrial
|
4,169,615
|
|
13,454,749
|
|
3,688,787
|
|
31,120
|
|
|
3,876,693
|
|
14,123,510
|
|
3,487,931
|
|
58,640
|
|
Other
|
69,090
|
|
—
|
|
(81,723)
|
|
18,347
|
|
|
124,063
|
|
—
|
|
181,566
|
|
9,373
|
|
Total
|
10,806,412
|
|
15,150,030
|
|
7,587,703
|
|
649,025
|
|
|
9,229,873
|
|
15,771,434
|
|
7,694,244
|
|
670,998
|
|
|
|
|
|
|
|
|
|
|
|
Average
Customers
|
|
|
|
|
|
|
|
|
Residential
|
60,685
|
|
13,970
|
|
50,086
|
|
23,742
|
|
|
49,639
|
|
13,783
|
|
48,603
|
|
23,670
|
|
Commercial
|
6,445
|
|
1,299
|
|
4,605
|
|
7,407
|
|
|
5,212
|
|
1,253
|
|
4,528
|
|
7,394
|
|
Industrial
|
110
|
|
58
|
|
947
|
|
2
|
|
|
103
|
|
56
|
|
833
|
|
2
|
|
Other
|
5
|
|
—
|
|
—
|
|
—
|
|
|
5
|
|
—
|
|
—
|
|
—
|
|
Total
|
67,245
|
|
15,327
|
|
55,638
|
|
31,151
|
|
|
54,959
|
|
15,092
|
|
53,964
|
|
31,066
|
|
|
|
|
|
|
|
|
|
|
|
(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) Worcester County NG Distribution (Sandpiper) is
now included within the Delmarva NG Distribution results, which
also includes the Delaware and
Maryland Divisions.
SOURCE Chesapeake Utilities Corporation