Commitment
Agility
Strategy
Collaboration
Growth
Leadership
Safety
Sustainability
Energy
Solutions
Strength
Improvement
Team
Service
Adaptability
Performance
Community
Value
Driven By
2 0 1 9 A N N U A L R E P O R T
Table of Contents
Driven By Energy.
Delivering Energy.
Our successful track record of
performance is driven by the
entrepreneurial spirit of our
employees as we consistently
deliver safe, secure, reliable
and efficient service and energy
solutions that are environmentally
and economically smart.
A Letter From Our President
2019 Financial Highlights
Our Company
04
10
14
Corporate Governance & ESG
Leadership & Board of Directors
Our History
20
30
36
Table of Contents
Driven By Energy.
Delivering Energy.
Our successful track record of
performance is driven by the
entrepreneurial spirit of our
employees as we consistently
deliver safe, secure, reliable
and efficient service and energy
solutions that are environmentally
and economically smart.
A Letter From Our President
2019 Financial Highlights
Our Company
04
10
14
Corporate Governance & ESG
Leadership & Board of Directors
Our History
20
30
36
A LETTER FROM OUR PRESIDENT
Driven By
Continuous
Improvement
In 2020, Chesapeake Utilities installed solar arrays at three of our
business locations. Aspire Energy in Orrville, OH; Sharp Energy in
Georgetown, DE; and Eastern Shore Natural Gas Company (ESNG)
use solar to reduce our carbon footprint and to minimize the
Company’s commercial electric utility costs. Pictured, left to right,
are Randall Musselman, Manager, Compression; and Duane Harrell,
Compressor Technician II, at the solar array located at ESNG’s
compressor station in Bridgeville, DE.
A LETTER FROM OUR PRESIDENT
Driven By
Continuous
Improvement
In 2020, Chesapeake Utilities installed solar arrays at three of our
business locations. Aspire Energy in Orrville, OH; Sharp Energy in
Georgetown, DE; and Eastern Shore Natural Gas Company (ESNG)
use solar to reduce our carbon footprint and to minimize the
Company’s commercial electric utility costs. Pictured, left to right,
are Randall Musselman, Manager, Compression; and Duane Harrell,
Compressor Technician II, at the solar array located at ESNG’s
compressor station in Bridgeville, DE.
A Letter From Our President
“As I write this letter, the COVID-19 virus has spread from
China to countries throughout the globe and is now impacting
the United States. Our hearts go out to those who have been
affected by the virus. Chesapeake Utilities has activated its
Pandemic Response Plan. Along with many other companies
across the country, we are taking precautionary steps to protect
our employees and ensure that we continue to meet the energy
needs of our customers. The Company is strong operationally
and financially. Our employees are highly motivated to serve the
communities where they live and work. As was the case after
Hurricane Michael, we are prepared to meet this challenge and
those that lie ahead.”
JEFF HOUSEHOLDER, PRESIDENT AND CEO
Dear Fellow Shareholders,
I am pleased to report that Chesapeake Utilities
Corporation recorded its 13th consecutive
year of record earnings in 2019 and paid
shareholder dividends for the 59th consecutive
year. While our financial performance is
enviable, I am most proud that our employees
are focused on the future to ensure that
Chesapeake Utilities continues its successful
history. We have an extremely talented,
hardworking team.
In my first year as CEO, it has been energizing to see our
employees’ commitment to growth, collaboration and
continuous improvement. This annual report shares many
of our recent accomplishments and highlights several of the
people who have made these accomplishments possible.
Jeff Householder, President and CEO
Building a Sustainable Future
These are interesting times for energy delivery companies.
On one hand, we hear a call to address climate change
through restricting customer access to natural gas. At the
same time, customer demand for natural and propane gas
service in our business areas is at an all-time high. Customer
growth in our Delaware, Maryland and Florida regulated
utility distribution operations is more than twice the national
average. Our customers appear to understand that the
clean-burning, economical fuel delivered to their homes,
businesses and vehicles is the same fuel responsible for
driving U.S. emissions to a 25-year low and more than a
decade of extraordinary domestic economic growth. I have
a strongly held belief that our existing gas businesses will
continue to have a major role to play in achieving a viable
climate change solution. As we look to increase renewable
energy sources, natural gas continues to offer an abundant,
clean and economic foundation fuel that supports the
movement toward lower emissions around the globe.
As the Environmental/Social/Governance (ESG) platform
continues to be a growing consideration for investors, we
are cultivating the Chesapeake Utilities sustainability story.
We have a long-standing history of excellent corporate
stewardship. For many years, Chesapeake has actively
supported the communities we serve through financial
contributions and countless employee volunteer hours
to the many charities and local service organizations.
Our business units have won numerous safety awards.
We have expanded those efforts externally to ensure the
safety of our local communities through many partnerships
and organizations, which include our ongoing engagement
with and training of third-party responders. In addition,
over 100 of our female employees actively participate in
our very own Women in Energy chapter. Our corporate
governance department’s policies and actions have garnered
national recognition. In 2019, Chesapeake Utilities received
the Corporate Secretary’s “2019 Governance Team of the
Year” award for small to mid-cap companies.
Our environmental actions are also notable, but less
well known. Chesapeake Utilities was one of the first gas
distributors to begin the systematic modernization of its
mains, service lines and other distribution facilities to improve
safety and lower carbon emissions. We have replaced 100%
of our cast iron mains and are almost 80% complete with the
bare steel mains and services. We have also been systematically
rebuilding and modernizing our gate and regulator stations.
Our corrosion and other leak emissions, as a result, have been
significantly reduced. So significantly that, in 2020, we are
pursuing an exemption from the EPA Greenhouse Gas (GHG)
Reporting Program granted to local distribution companies
(LDCs) whose annual GHG levels are judged to be less than
25,000 metric tons over a five-year period.
The expansion of our gas transmission and distribution
systems to previously unserved areas has accelerated the
conversion of thousands of coal, oil, kerosene and wood
burning appliances and industrial equipment to clean-burning
natural gas. We have also supported the efficient use of
natural gas. For over 20 years, our Florida gas divisions
have provided energy conservation rebates to residential
and commercial customers who have installed high efficiency
appliances. On the electric side, our distribution utility
purchases power from one of the most efficient combined
heat and power (CHP) plants in the country and from a
wholesale supplier that operates the largest renewable
energy fleet in Florida. Sharp Energy, our propane distribution
business, is one of the largest propane AutoGas suppliers
in the Northeast, whose service is displacing diesel fuel
and providing a cleaner, safer vehicle fuel for school buses
and fleet vehicles.
Nonetheless, we know it’s our job to continuously improve.
We can play an enhanced role to ensure that the communities
we serve are environmentally, economically and culturally
sustainable. We can continue to embrace employee diversity
and inclusion. We can take our internal safety and operational
compliance practices to the next level. We can drive system
emissions even lower. We can keep expanding our existing
delivery systems to provide clean, low cost energy that meets
the needs of a growing economy. At the same time, we can
make prudent investments in renewable natural gas (RNG),
liquefied natural gas (LNG), energy conservation and
improved delivery technologies. I believe Chesapeake Utilities
can do all of these things and, at the same time, continue to
deliver the industry-leading performance our investors expect.
06 / A Letter From Our President / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / A Letter From Our President / 07
A Letter From Our President
“As I write this letter, the COVID-19 virus has spread from
China to countries throughout the globe and is now impacting
the United States. Our hearts go out to those who have been
affected by the virus. Chesapeake Utilities has activated its
Pandemic Response Plan. Along with many other companies
across the country, we are taking precautionary steps to protect
our employees and ensure that we continue to meet the energy
needs of our customers. The Company is strong operationally
and financially. Our employees are highly motivated to serve the
communities where they live and work. As was the case after
Hurricane Michael, we are prepared to meet this challenge and
those that lie ahead.”
JEFF HOUSEHOLDER, PRESIDENT AND CEO
Dear Fellow Shareholders,
I am pleased to report that Chesapeake Utilities
Corporation recorded its 13th consecutive
year of record earnings in 2019 and paid
shareholder dividends for the 59th consecutive
year. While our financial performance is
enviable, I am most proud that our employees
are focused on the future to ensure that
Chesapeake Utilities continues its successful
history. We have an extremely talented,
hardworking team.
In my first year as CEO, it has been energizing to see our
employees’ commitment to growth, collaboration and
continuous improvement. This annual report shares many
of our recent accomplishments and highlights several of the
people who have made these accomplishments possible.
Jeff Householder, President and CEO
Building a Sustainable Future
These are interesting times for energy delivery companies.
On one hand, we hear a call to address climate change
through restricting customer access to natural gas. At the
same time, customer demand for natural and propane gas
service in our business areas is at an all-time high. Customer
growth in our Delaware, Maryland and Florida regulated
utility distribution operations is more than twice the national
average. Our customers appear to understand that the
clean-burning, economical fuel delivered to their homes,
businesses and vehicles is the same fuel responsible for
driving U.S. emissions to a 25-year low and more than a
decade of extraordinary domestic economic growth. I have
a strongly held belief that our existing gas businesses will
continue to have a major role to play in achieving a viable
climate change solution. As we look to increase renewable
energy sources, natural gas continues to offer an abundant,
clean and economic foundation fuel that supports the
movement toward lower emissions around the globe.
As the Environmental/Social/Governance (ESG) platform
continues to be a growing consideration for investors, we
are cultivating the Chesapeake Utilities sustainability story.
We have a long-standing history of excellent corporate
stewardship. For many years, Chesapeake has actively
supported the communities we serve through financial
contributions and countless employee volunteer hours
to the many charities and local service organizations.
Our business units have won numerous safety awards.
We have expanded those efforts externally to ensure the
safety of our local communities through many partnerships
and organizations, which include our ongoing engagement
with and training of third-party responders. In addition,
over 100 of our female employees actively participate in
our very own Women in Energy chapter. Our corporate
governance department’s policies and actions have garnered
national recognition. In 2019, Chesapeake Utilities received
the Corporate Secretary’s “2019 Governance Team of the
Year” award for small to mid-cap companies.
Our environmental actions are also notable, but less
well known. Chesapeake Utilities was one of the first gas
distributors to begin the systematic modernization of its
mains, service lines and other distribution facilities to improve
safety and lower carbon emissions. We have replaced 100%
of our cast iron mains and are almost 80% complete with the
bare steel mains and services. We have also been systematically
rebuilding and modernizing our gate and regulator stations.
Our corrosion and other leak emissions, as a result, have been
significantly reduced. So significantly that, in 2020, we are
pursuing an exemption from the EPA Greenhouse Gas (GHG)
Reporting Program granted to local distribution companies
(LDCs) whose annual GHG levels are judged to be less than
25,000 metric tons over a five-year period.
The expansion of our gas transmission and distribution
systems to previously unserved areas has accelerated the
conversion of thousands of coal, oil, kerosene and wood
burning appliances and industrial equipment to clean-burning
natural gas. We have also supported the efficient use of
natural gas. For over 20 years, our Florida gas divisions
have provided energy conservation rebates to residential
and commercial customers who have installed high efficiency
appliances. On the electric side, our distribution utility
purchases power from one of the most efficient combined
heat and power (CHP) plants in the country and from a
wholesale supplier that operates the largest renewable
energy fleet in Florida. Sharp Energy, our propane distribution
business, is one of the largest propane AutoGas suppliers
in the Northeast, whose service is displacing diesel fuel
and providing a cleaner, safer vehicle fuel for school buses
and fleet vehicles.
Nonetheless, we know it’s our job to continuously improve.
We can play an enhanced role to ensure that the communities
we serve are environmentally, economically and culturally
sustainable. We can continue to embrace employee diversity
and inclusion. We can take our internal safety and operational
compliance practices to the next level. We can drive system
emissions even lower. We can keep expanding our existing
delivery systems to provide clean, low cost energy that meets
the needs of a growing economy. At the same time, we can
make prudent investments in renewable natural gas (RNG),
liquefied natural gas (LNG), energy conservation and
improved delivery technologies. I believe Chesapeake Utilities
can do all of these things and, at the same time, continue to
deliver the industry-leading performance our investors expect.
06 / A Letter From Our President / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / A Letter From Our President / 07
Strategy, Planning, Discipline
In previous letters, we have described the Company’s
robust strategic planning process that guides our disciplined
approach to investment and business management.
Chesapeake Utilities has a long history of driving earnings
13 Consecutive Years
of Record Earnings
2019 was a year of significant financial accomplishments
for Chesapeake Utilities. Here are a few of the highlights:
growth by investing in projects and acquiring companies
• We invested $199 million in new Capital Expenditures
that generate our target returns while maintaining a prudent
in 2019.
level of shareholder risk. Our capital deployment has been
at industry-leading levels for some time. But, we have been
disciplined and selective, walking away from far more
opportunities than we have executed. That discipline has
enabled us to achieve record growth, including again in 2019,
• Our annual margin growth from Continuing Operations
was $25.0 million, and we reduced our cost spent relative
to gross margin to the lowest level in more than 15 years.
• Net Income for 2019 was a record $65.2 million.
while at the same time maintaining upper quartile equity returns.
• This record Net Income was a result of higher Operating
We often find great investments that others miss or judge to
be too small or not core to their business. One of the reasons
we find these opportunities, is that we actively look for them.
Our business development efforts are coordinated across
all of our operating units. Many of our growth investments
involve more than one of our businesses, such as building
transmission pipelines that served our distribution utilities
or building a profitable CHP plant that also enabled margin
opportunities for our gas transmission, gas distribution and
Income from Continuing Operations, which crossed over
$100 million for the first time ever, reaching $106.3 million.
• Our 2019 Basic Earnings Per Share of $3.97 was also a
record, and is 14.7% higher than our 2018 Basic Earnings
Per Share of $3.46.
• Our Board of Directors declared a dividend increase
of 9.5%, resulting in the five-year dividend growth rate
in line with the corresponding five-year earnings per
share growth rate.
electric distribution businesses. We also look for opportunities
• We achieved a 12% Return on Equity.
to expand an acquired business. Marlin Gas Services (Marlin)
is a great example. We acquired Marlin because we saw great
growth potential in its classic compressed natural gas (CNG)
temporary fuel service business. In 2019, Marlin’s first year as
a Chesapeake Utilities business, we more than doubled margins.
Beyond growing the existing business, we also believed Marlin
could become a leading transporter of RNG, bridging the
pipeline gaps and serving as a virtual pipeline between bio-gas
producers and LDCs or end-use customers. We are well on the
way to turning that vision into reality.
• Total Shareholder Return was approximately 20% for
the year.
The Company’s great performance is the result of substantial
organic growth in our core units, several significant expansion
projects along with acquisitions (Marlin Gas Services,
Ohl Propane and Boulden Propane) that have immediately
contributed to earnings, and positive regulatory actions.
We also transitioned out of our Peninsula Energy Services
Company (PESCO) gas marketing business, eliminating a
“As we look to increase renewable energy sources,
natural gas continues to offer an abundant,
clean and economic foundation fuel that supports
the movement toward lower emissions around
the globe.”
JEFF HOUSEHOLDER, PRESIDENT AND CEO
non-strategic, higher risk unit from our portfolio. The sale
As I write this letter, the COVID-19 virus has spread from China
of PESCO produced a $5.4 million after tax gain for our
to countries throughout the globe and is now impacting the
shareholders. It’s worth noting that record financial
United States. Our hearts go out to those who have been
performance was achieved in our continuing businesses
affected by the virus. Chesapeake Utilities has activated its
even excluding the one-time gain from the sale of PESCO.
Pandemic Response Plan. Along with many other companies
While our financial performance in 2019 was impressive,
we believe our Company’s best days are ahead. Peninsula
Pipeline Company will complete two Florida projects already
under construction in 2020 — the Callahan Pipeline and
West Palm Beach Expansion. We also are planning to begin
construction on two new pipeline projects — the Eastern
Shore Natural Gas Del-Mar Energy Pathway in eastern
across the country, we are taking precautionary steps to
protect our employees and ensure that we continue to meet
the energy needs of our customers. The Company is strong
operationally and financially. Our employees are highly
motivated to serve the communities where they live and work.
As was the case after Hurricane Michael, we are prepared to
meet this challenge and those that lie ahead.
Sussex County, Delaware and into Maryland, and the Guernsey
I firmly believe out of challenging, chaotic times come new
Power Plant pipeline in Ohio. These projects represent
opportunities. Our team stands ready and is excited about the
over $100 million of new investment and over $17 million
future. Thank you for your investment and being part of the
in new margin in 2021.
Chesapeake Utilities family.
We are confident in our ability to continue to identify and
Sincerely,
develop future investment opportunities. Recognizing our
2019 success and the strong outlook for growth, we recently
increased our earnings guidance range for the year 2022.
Jeffry M. Householder
President and Chief Executive Officer
On February 13, 2020, Chesapeake Utilities (NYSE - CPK)
stock surpassed $100 per share.
Focused on the Fundamentals
One of our principal strategic objectives is to position the Company
for continued growth while meeting evolving operational and
market challenges. In 2019, we took a hard look at ourselves.
We have doubled the size of our business twice in the past 10
years, and are well on the way toward doubling it again in the
next five years. Growth at that pace requires that a company’s
operating capabilities evolve. New and different skills are needed
and diverse thinking becomes ever more important. Technology
upgrades, procedure overhauls and revised practices are required.
The old “we’ve always done it this way” just doesn’t work anymore.
So, in 2019, we initiated a realignment of our organizational
structure to achieve greater collaboration across our business
units and corporate support units. We are taking a measured,
incremental approach to simplify and standardize our business
processes, operating practices and technology. Far from being
disruptive, these actions have been embraced by our employees
and are already resulting in increased collaboration, a safer
workplace, a more engaged team, better decision-making
and lower costs. I can assure you that at the same time our
organization evolves to meet future growth, our employees
continue to be laser focused on identifying and executing
opportunities that contribute to the upper quartile growth.
Our 2019 performance is evidence of that commitment.
08 / A Letter From Our President / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / A Letter From Our President / 09
Strategy, Planning, Discipline
In previous letters, we have described the Company’s
robust strategic planning process that guides our disciplined
approach to investment and business management.
Chesapeake Utilities has a long history of driving earnings
13 Consecutive Years
of Record Earnings
2019 was a year of significant financial accomplishments
for Chesapeake Utilities. Here are a few of the highlights:
growth by investing in projects and acquiring companies
• We invested $199 million in new Capital Expenditures
that generate our target returns while maintaining a prudent
in 2019.
level of shareholder risk. Our capital deployment has been
at industry-leading levels for some time. But, we have been
disciplined and selective, walking away from far more
opportunities than we have executed. That discipline has
enabled us to achieve record growth, including again in 2019,
• Our annual margin growth from Continuing Operations
was $25.0 million, and we reduced our cost spent relative
to gross margin to the lowest level in more than 15 years.
• Net Income for 2019 was a record $65.2 million.
while at the same time maintaining upper quartile equity returns.
• This record Net Income was a result of higher Operating
We often find great investments that others miss or judge to
be too small or not core to their business. One of the reasons
we find these opportunities, is that we actively look for them.
Our business development efforts are coordinated across
all of our operating units. Many of our growth investments
involve more than one of our businesses, such as building
transmission pipelines that served our distribution utilities
or building a profitable CHP plant that also enabled margin
opportunities for our gas transmission, gas distribution and
Income from Continuing Operations, which crossed over
$100 million for the first time ever, reaching $106.3 million.
• Our 2019 Basic Earnings Per Share of $3.97 was also a
record, and is 14.7% higher than our 2018 Basic Earnings
Per Share of $3.46.
• Our Board of Directors declared a dividend increase
of 9.5%, resulting in the five-year dividend growth rate
in line with the corresponding five-year earnings per
share growth rate.
electric distribution businesses. We also look for opportunities
• We achieved a 12% Return on Equity.
to expand an acquired business. Marlin Gas Services (Marlin)
is a great example. We acquired Marlin because we saw great
growth potential in its classic compressed natural gas (CNG)
temporary fuel service business. In 2019, Marlin’s first year as
a Chesapeake Utilities business, we more than doubled margins.
Beyond growing the existing business, we also believed Marlin
could become a leading transporter of RNG, bridging the
pipeline gaps and serving as a virtual pipeline between bio-gas
producers and LDCs or end-use customers. We are well on the
way to turning that vision into reality.
• Total Shareholder Return was approximately 20% for
the year.
The Company’s great performance is the result of substantial
organic growth in our core units, several significant expansion
projects along with acquisitions (Marlin Gas Services,
Ohl Propane and Boulden Propane) that have immediately
contributed to earnings, and positive regulatory actions.
We also transitioned out of our Peninsula Energy Services
Company (PESCO) gas marketing business, eliminating a
“As we look to increase renewable energy sources,
natural gas continues to offer an abundant,
clean and economic foundation fuel that supports
the movement toward lower emissions around
the globe.”
JEFF HOUSEHOLDER, PRESIDENT AND CEO
non-strategic, higher risk unit from our portfolio. The sale
As I write this letter, the COVID-19 virus has spread from China
of PESCO produced a $5.4 million after tax gain for our
to countries throughout the globe and is now impacting the
shareholders. It’s worth noting that record financial
United States. Our hearts go out to those who have been
performance was achieved in our continuing businesses
affected by the virus. Chesapeake Utilities has activated its
even excluding the one-time gain from the sale of PESCO.
Pandemic Response Plan. Along with many other companies
While our financial performance in 2019 was impressive,
we believe our Company’s best days are ahead. Peninsula
Pipeline Company will complete two Florida projects already
under construction in 2020 — the Callahan Pipeline and
West Palm Beach Expansion. We also are planning to begin
construction on two new pipeline projects — the Eastern
Shore Natural Gas Del-Mar Energy Pathway in eastern
across the country, we are taking precautionary steps to
protect our employees and ensure that we continue to meet
the energy needs of our customers. The Company is strong
operationally and financially. Our employees are highly
motivated to serve the communities where they live and work.
As was the case after Hurricane Michael, we are prepared to
meet this challenge and those that lie ahead.
Sussex County, Delaware and into Maryland, and the Guernsey
I firmly believe out of challenging, chaotic times come new
Power Plant pipeline in Ohio. These projects represent
opportunities. Our team stands ready and is excited about the
over $100 million of new investment and over $17 million
future. Thank you for your investment and being part of the
in new margin in 2021.
Chesapeake Utilities family.
We are confident in our ability to continue to identify and
Sincerely,
develop future investment opportunities. Recognizing our
2019 success and the strong outlook for growth, we recently
increased our earnings guidance range for the year 2022.
Jeffry M. Householder
President and Chief Executive Officer
On February 13, 2020, Chesapeake Utilities (NYSE - CPK)
stock surpassed $100 per share.
Focused on the Fundamentals
One of our principal strategic objectives is to position the Company
for continued growth while meeting evolving operational and
market challenges. In 2019, we took a hard look at ourselves.
We have doubled the size of our business twice in the past 10
years, and are well on the way toward doubling it again in the
next five years. Growth at that pace requires that a company’s
operating capabilities evolve. New and different skills are needed
and diverse thinking becomes ever more important. Technology
upgrades, procedure overhauls and revised practices are required.
The old “we’ve always done it this way” just doesn’t work anymore.
So, in 2019, we initiated a realignment of our organizational
structure to achieve greater collaboration across our business
units and corporate support units. We are taking a measured,
incremental approach to simplify and standardize our business
processes, operating practices and technology. Far from being
disruptive, these actions have been embraced by our employees
and are already resulting in increased collaboration, a safer
workplace, a more engaged team, better decision-making
and lower costs. I can assure you that at the same time our
organization evolves to meet future growth, our employees
continue to be laser focused on identifying and executing
opportunities that contribute to the upper quartile growth.
Our 2019 performance is evidence of that commitment.
08 / A Letter From Our President / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / A Letter From Our President / 09
2019 FINANCIAL HIGHLIGHTS
Driven By
Growth
On May 20, 2019, Chesapeake Utilities made Company history at
the New York Stock Exchange (NYSE) by ringing The Opening Bell®.
Several employees joined members of the Company’s leadership
team in New York City for the ceremonial ringing in celebration
of the contributions of our employees, superior earnings growth
and total shareholder return, and more than 25 years of being
listed on the NYSE.
2019 FINANCIAL HIGHLIGHTS
Driven By
Growth
On May 20, 2019, Chesapeake Utilities made Company history at
the New York Stock Exchange (NYSE) by ringing The Opening Bell®.
Several employees joined members of the Company’s leadership
team in New York City for the ceremonial ringing in celebration
of the contributions of our employees, superior earnings growth
and total shareholder return, and more than 25 years of being
listed on the NYSE.
2019 Financial Highlights
“We reported record earnings with operating income that exceeded $100 million for the
first time in our history. Our compound annual growth in earnings has exceeded 8.5% for
multiple trailing periods including the 10 years ended 2019. Our disciplined approach
to strategic investments has led to top quartile performance in terms of total return on
equity over the past five years. Beyond 2019, we expect this trend to continue. Our team’s
collaboration across the Company and relentless focus on identifying tandem projects
and energy solutions; and developing organic growth in our service territories, combined
with regulatory ingenuity and cost efficiencies, will continue to drive increased earnings.
Growth is a priority with equal attention to safety, the well-being of our communities,
environmental stewardship, and engagement of our employees.”
BETH COOPER, EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Compound Annual Shareholder Return
(Periods Ended 12/31/19)
Compound Annual Shareholder Return
(Periods Ended 12/31/19)
Compound Annual Shareholder Return
1
1
1
1
(Periods Ended 12/31/19)
6
9
9
4
.
1
2
9
6
%
%
%
%
1
6
2
%
1
9
9
%
1
9
9
%
1
4
9
%
1
4
9
%
1
4
6
%
1
4
6
%
1
4
9
%
1
6
2
%
1
9
.
1
1
9
.
1
%
%
.
.
.
.
.
.
.
.
.
.
.
.
$
1
.
0
8
$
1
.
0
8
$
1
.
0
8
Annualized Dividends Per Share
Annualized Dividends Per Share
$
1
.
1
5
Annualized Dividends Per Share
$
1
.
4
8
$
1
.
2
2
$
1
.
3
0
$
1
.
1
5
$
1
.
3
0
$
1
.
3
0
$
1
.
4
8
$
1
.
4
8
$
1
.
2
2
$
1
.
2
2
$
1
.
1
5
$
1
.
6
2
$
1
.
6
2
$
1
.
6
2
20 YR
20 YR
10 YR
10 YR
5 YR
5 YR
3 YR
3 YR
1 YR
1 YR
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
Our investors have earned 15% annually or greater
20 YR
on their Chesapeake Utilities’ investment.
10 YR
5 YR
3 YR
1 YR
Market Capitalization at December 31
(in millions)
Market Capitalization at December 31
(in millions)
Market Capitalization at December 31
$
$
$
(in millions)
9
8
8
6
5
6
6
6
3
$
$
6
6
9
8
6
5
6
3
6
$
7
2
4
$
5
7
2
4
5
$
3
0
1
.
1
$
3
0
1
.
1
$
1
,
2
8
3
9
$
1
,
0
9
1
.
5
$
1
,
3
3
1
.
6
$
1
,
5
7
2
0
.
$
7
2
4
5
$
3
0
1
.
1
$
9
5
3
$
1
,
5
7
2
$
.
0
1
,
5
7
2
0
$
1
,
3
3
1
$
.
6
1
,
3
3
1
.
6
$
1
,
0
9
$
1
.
1
5
,
0
9
1
.
5
$
1
,
2
8
3
$
.
1
9
,
2
8
3
9
.
.
.
.
.
.
.
.
.
.
.
.
Our Board of Directors declared a dividend increase of 9.5%.
2014
2015
2016
2019
2018
2017
Average Return on Equity
Average Return on Equity
from Continuing Ops
from Continuing Ops
Average Return on Equity
1
from Continuing Ops
1
.
2
%
%
1
1
.
3
%
1
2
.
1
1
2
.
1
1
1
.
3
%
1
1
.
2
%
%
.
1
2
6
%
1
2
.
1
%
1
1
.
3
%
1
1
.
2
%
.
1
2
6
%
1
2
6
%
.
.
1
2
0
%
.
1
2
0
%
1
2
0
%
.
.
1
2
2
%
.
1
2
2
%
1
2
2
%
.
Financial Highlights
(dollars in thousands, except per share data)
2019
2018
2019/2018
% Change
2017
2018/2017
% Change
1999 2009 2014 2015 2016 2017 2018 2019
1999 2009 2014 2015 2016 2017 2018 2019
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
1999 2009 2014 2015 2016 2017 2018 2019
In the past 10 years, we have doubled our market
capitalization twice.
2014
In 2019, we achieved a 12% Return on Equity.
2018
2019
2016
2015
2017
Gross Margin from Continuing Operations
$325,104
$300,146
Operating Income from Continuing Operations
$106,287
$94,843
Income from Continuing Operations
$61,142
$56,862
Net Income
$65,153
$56,580
Earnings Per Share from Continuing Operations
8%
12%
8%
15%
7%
7%
9%
5%
8%
$277,457
$89,730
8%
6%
$60,326
-6%(1)
$58,124
-3%(1)
$3.69
$3.68
$1.30
-6%(1)
-6%(1)
14%
$1,414,934
20%
$486,294
7%
$3.73
$3.72
$1.62
$3.48
$3.47
$1.48
$1,783,198
$1,693,671
$561,577
$518,439
Basic
Diluted
Annualized Dividends Per Share
Total Assets
Stockholders’ Equity
Other
Employees
Shares Outstanding at Year End
16,403,776
16,378,545
N/M/F(2)
16,344,442
N/M/F(2)
Average Distribution Customers
255,623
247,487
3%
240,323
3%
955
983
-3%
945
4%
Diluted Earnings Per Share
Diluted Earnings Per Share
from Continuing Ops
from Continuing Ops
Diluted Earnings Per Share
$
$
from Continuing Ops
2
3
4
6
7
3
$
$
3
2
4
6
7
3
$
2
7
7
$
2
7
7
$
3
6
8
$
3
6
8
$
3
6
8
$
2
6
3
$
3
4
7
$
2
7
7
.
.
.
.
.
.
.
.
.
.
.
.
$
2
3
7
.
.
$
2
3
7
$
2
3
7
.
.
$
3
7
2
$
3
7
2
.
$
3
7
2
.
$
9
8
$
9
8
$300
$300
$
9
8
Annual Capital Expenditures
(in millions)
Annual Capital Expenditures
(in millions)
Annual Capital Expenditures
(in millions)
$
$
1
1
6
7
9
9
$
1
9
5
$
1
7
9
$
1
9
5
$
1
6
9
$
2
8
3
$
1
9
5
$
1
6
9
$
1
7
9
$
2
8
3
$
2
8
3
$
1
9
9
$
1
9
9
$
1
9
9
5 Y E A R A N N U A L G R O W T H = 9 . 4 4 %
5 Y E A R A N N U A L G R O W T H = 9 . 4 4 %
5 Y E A R A N N U A L G R O W T H = 9 . 4 4 %
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
2019 Earnings Per Share from Continuing Operations was
2017
2014
a record $3.72, an increase of $.25 or 7.2% over 2018.
2016
2019
2018
2015
$250
$200
$250
$300
$200
$250
$150
$200
$100
$150
$50
$100
$150
$100
$50
$50
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
CAPITAL EXPENDITURES
2014
2015
EXCLUDING ACQUISITIONS
CAPITAL EXPENDITURES
EXCLUDING ACQUISITIONS
2016
ACQUISITIONS
2017
ACQUISITIONS
2018
2019
2019
5%
CAP EX/TOTAL CAP (%)
2019
CAP EX/TOTAL CAP (%)
CAPITAL EXPENDITURES
EXCLUDING ACQUISITIONS
We invested $199 million in new Capital Expenditures in 2019.
ACQUISITIONS
CAP EX/TOTAL CAP (%)
35%
35%
30%
25%
20%
15%
10%
5%
30%
35%
25%
30%
20%
25%
15%
20%
10%
15%
5%
10%
$120
$120
$100
$120
$100
$80
$100
$80
Annual Stock Price Range
(The closing price for each year is noted and shown within the annual range.)
Annual Stock Price Range
(The closing price for each year is noted and shown within the annual range.)
Annual Stock Price Range
(The closing price for each year is noted and shown within the annual range.)
$81.30
$81.30
$78.55
$78.55
$95.83
$95.83
$49.66
$49.66
$49.66
$56.75
$56.75
$56.75
$66.95
$66.95
$78.55
$66.95
$81.30
$95.83
$21.37
$21.37
$21.37
2009
2009
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
$60
$80
$60
$40
$60
$40
$20
$40
$20
$20
$12.25
$12.25
$12.25
1999
1999
¹2017 includes one-time Tax Cuts & Jobs Act benefit.
2Not a meaningful figure.
1999
2009
2014
2015
2016
2017
2018
2019
12 / 2019 Financial Highlights / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / 2019 Financial Highlights / 13
2019 Financial Highlights
“We reported record earnings with operating income that exceeded $100 million for the
first time in our history. Our compound annual growth in earnings has exceeded 8.5% for
multiple trailing periods including the 10 years ended 2019. Our disciplined approach
to strategic investments has led to top quartile performance in terms of total return on
equity over the past five years. Beyond 2019, we expect this trend to continue. Our team’s
collaboration across the Company and relentless focus on identifying tandem projects
and energy solutions; and developing organic growth in our service territories, combined
with regulatory ingenuity and cost efficiencies, will continue to drive increased earnings.
Growth is a priority with equal attention to safety, the well-being of our communities,
environmental stewardship, and engagement of our employees.”
BETH COOPER, EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
Compound Annual Shareholder Return
(Periods Ended 12/31/19)
Compound Annual Shareholder Return
(Periods Ended 12/31/19)
Compound Annual Shareholder Return
1
1
1
1
(Periods Ended 12/31/19)
6
9
9
4
.
1
2
9
6
%
%
%
%
1
6
2
%
1
9
9
%
1
9
9
%
1
4
9
%
1
4
9
%
1
4
6
%
1
4
6
%
1
4
9
%
1
6
2
%
1
9
.
1
1
9
.
1
%
%
.
.
.
.
.
.
.
.
.
.
.
.
$
1
.
0
8
$
1
.
0
8
$
1
.
0
8
Annualized Dividends Per Share
Annualized Dividends Per Share
$
1
.
1
5
Annualized Dividends Per Share
$
1
.
4
8
$
1
.
2
2
$
1
.
3
0
$
1
.
1
5
$
1
.
3
0
$
1
.
3
0
$
1
.
4
8
$
1
.
4
8
$
1
.
2
2
$
1
.
2
2
$
1
.
1
5
$
1
.
6
2
$
1
.
6
2
$
1
.
6
2
20 YR
20 YR
10 YR
10 YR
5 YR
5 YR
3 YR
3 YR
1 YR
1 YR
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
Our investors have earned 15% annually or greater
20 YR
on their Chesapeake Utilities’ investment.
10 YR
5 YR
3 YR
1 YR
Market Capitalization at December 31
(in millions)
Market Capitalization at December 31
(in millions)
Market Capitalization at December 31
$
$
$
(in millions)
9
8
8
6
5
6
6
6
3
$
$
6
6
9
8
6
5
6
3
6
$
7
2
4
$
5
7
2
4
5
$
3
0
1
.
1
$
3
0
1
.
1
$
1
,
2
8
3
9
$
1
,
0
9
1
.
5
$
1
,
3
3
1
.
6
$
1
,
5
7
2
0
.
$
7
2
4
5
$
3
0
1
.
1
$
9
5
3
$
1
,
5
7
2
$
.
0
1
,
5
7
2
0
$
1
,
3
3
1
$
.
6
1
,
3
3
1
.
6
$
1
,
0
9
$
1
.
1
5
,
0
9
1
.
5
$
1
,
2
8
3
$
.
1
9
,
2
8
3
9
.
.
.
.
.
.
.
.
.
.
.
.
Our Board of Directors declared a dividend increase of 9.5%.
2014
2015
2016
2019
2018
2017
Average Return on Equity
Average Return on Equity
from Continuing Ops
from Continuing Ops
Average Return on Equity
1
from Continuing Ops
1
.
2
%
%
1
1
.
3
%
1
2
.
1
1
2
.
1
1
1
.
3
%
1
1
.
2
%
%
.
.
1
2
6
%
1
2
.
1
%
1
1
.
3
%
1
1
.
2
%
1
2
6
%
1
2
6
%
.
.
1
2
0
%
.
1
2
0
%
1
2
0
%
.
.
1
2
2
%
.
1
2
2
%
1
2
2
%
.
Financial Highlights
(dollars in thousands, except per share data)
2019
2018
2019/2018
% Change
2017
2018/2017
% Change
1999 2009 2014 2015 2016 2017 2018 2019
1999 2009 2014 2015 2016 2017 2018 2019
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
1999 2009 2014 2015 2016 2017 2018 2019
In the past 10 years, we have doubled our market
capitalization twice.
2014
In 2019, we achieved a 12% Return on Equity.
2018
2019
2016
2015
2017
Gross Margin from Continuing Operations
$325,104
$300,146
Operating Income from Continuing Operations
$106,287
$94,843
Income from Continuing Operations
$61,142
$56,862
Net Income
$65,153
$56,580
Earnings Per Share from Continuing Operations
8%
12%
8%
15%
7%
7%
9%
5%
8%
$277,457
$89,730
8%
6%
$60,326
-6%(1)
$58,124
-3%(1)
$3.69
$3.68
$1.30
-6%(1)
-6%(1)
14%
$1,414,934
20%
$486,294
7%
$3.73
$3.72
$1.62
$3.48
$3.47
$1.48
$1,783,198
$1,693,671
$561,577
$518,439
Basic
Diluted
Annualized Dividends Per Share
Total Assets
Stockholders’ Equity
Other
Employees
Shares Outstanding at Year End
16,403,776
16,378,545
N/M/F(2)
16,344,442
N/M/F(2)
Average Distribution Customers
255,623
247,487
3%
240,323
3%
955
983
-3%
945
4%
Diluted Earnings Per Share
Diluted Earnings Per Share
from Continuing Ops
from Continuing Ops
Diluted Earnings Per Share
$
$
from Continuing Ops
2
3
4
6
7
3
$
$
3
2
4
6
7
3
$
2
7
7
$
2
7
7
$
3
6
8
$
3
6
8
$
3
6
8
$
2
6
3
$
3
4
7
$
2
7
7
.
.
.
.
.
.
.
.
.
.
.
.
.
$
3
7
2
$
3
7
2
.
$
2
3
7
.
.
$
2
3
7
$
2
3
7
.
$
3
7
2
.
$
9
8
$
9
8
$300
$300
$
9
8
Annual Capital Expenditures
(in millions)
Annual Capital Expenditures
(in millions)
Annual Capital Expenditures
(in millions)
$
$
1
1
6
7
9
9
$
1
9
5
$
1
7
9
$
1
9
5
$
1
6
9
$
2
8
3
$
1
9
5
$
1
6
9
$
1
7
9
$
2
8
3
$
2
8
3
$
1
9
9
$
1
9
9
$
1
9
9
5 Y E A R A N N U A L G R O W T H = 9 . 4 4 %
5 Y E A R A N N U A L G R O W T H = 9 . 4 4 %
5 Y E A R A N N U A L G R O W T H = 9 . 4 4 %
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
2019 Earnings Per Share from Continuing Operations was
2017
2014
a record $3.72, an increase of $.25 or 7.2% over 2018.
2016
2019
2018
2015
$250
$200
$250
$300
$200
$250
$150
$200
$100
$150
$50
$100
$150
$100
$50
$50
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
CAPITAL EXPENDITURES
2014
2015
EXCLUDING ACQUISITIONS
CAPITAL EXPENDITURES
EXCLUDING ACQUISITIONS
2016
ACQUISITIONS
2017
ACQUISITIONS
2018
2019
2019
5%
CAP EX/TOTAL CAP (%)
2019
CAP EX/TOTAL CAP (%)
CAPITAL EXPENDITURES
EXCLUDING ACQUISITIONS
We invested $199 million in new Capital Expenditures in 2019.
ACQUISITIONS
CAP EX/TOTAL CAP (%)
35%
35%
30%
25%
20%
15%
10%
5%
30%
35%
25%
30%
20%
25%
15%
20%
10%
15%
5%
10%
$120
$120
$100
$120
$100
$80
$100
$80
Annual Stock Price Range
(The closing price for each year is noted and shown within the annual range.)
Annual Stock Price Range
(The closing price for each year is noted and shown within the annual range.)
Annual Stock Price Range
(The closing price for each year is noted and shown within the annual range.)
$81.30
$81.30
$78.55
$78.55
$95.83
$95.83
$49.66
$49.66
$49.66
$56.75
$56.75
$56.75
$66.95
$66.95
$78.55
$66.95
$81.30
$95.83
$21.37
$21.37
$21.37
2009
2009
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
$60
$80
$60
$40
$60
$40
$20
$40
$20
$20
$12.25
$12.25
$12.25
1999
1999
¹2017 includes one-time Tax Cuts & Jobs Act benefit.
2Not a meaningful figure.
1999
2009
2014
2015
2016
2017
2018
2019
12 / 2019 Financial Highlights / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / 2019 Financial Highlights / 13
OUR COMPANY
Driven By
Our Team
March 18 and April 18 commemorate National Gas Workers’ Day
and Line Workers’ Appreciation Day, respectively. Chesapeake
Utilities celebrates these days in honor of our employees for their
dedication, hard work and impactful community involvement that
contribute to providing safe, reliable and efficient energy service.
Left to right, are Bradley Flowers, Senior Lineman; and Kevin Harris,
Senior Lineman.
OUR COMPANY
Driven By
Our Team
March 18 and April 18 commemorate National Gas Workers’ Day
and Line Workers’ Appreciation Day, respectively. Chesapeake
Utilities celebrates these days in honor of our employees for their
dedication, hard work and impactful community involvement that
contribute to providing safe, reliable and efficient energy service.
Left to right, are Bradley Flowers, Senior Lineman; and Kevin Harris,
Senior Lineman.
Our Company
Chesapeake Utilities Corporation
is a NYSE-traded company (CPK),
headquartered in Dover, Delaware.
Through our operating divisions and
subsidiaries, we are a diversified energy
delivery company engaged in distribution
of natural gas, propane gas and electricity;
the transmission of natural gas; the generation
of electricity and steam; mobile CNG solutions;
and other businesses.
Safety is the
cornerstone of
our responsibility
to employees,
customers and
communities.
TOP:
Across our Company, our employees are vigilant about following
safety guidelines and procedures, and promoting the safety of
our energy services through awareness and training programs
within our organization and communities. Bill Hermstedt,
Manager, Pipeline Safety, left; and Anthony Coker, Training
Coordinator, right, educate and inform local high school
students about the significance of safety within our Company
and the energy industry, while indicating the components of
our Chesapeake Utilities Safety Trailer.
BOTTOM:
Colleen Dalious, Pipeline Locator Technician I, is responsible
for safely and accurately locating gas lines to ensure that
colleagues and contractors can operate in complete safety,
with full knowledge of the location of any underground utility
lines they may encounter.
We are rooted in a tradition of teamwork and leadership
driven by an entrepreneurial spirit that guides us every day.
Our employees, who collaborate across the Company, are
diligent in providing innovative and safe energy solutions
to serve our customers and to support our communities,
while positioning us for continuous long-term growth.
and those we serve. We work collectively with public
officials, emergency responders, customers and safety
advocates to encourage best practices and a broader
safety culture embedded within our local communities.
As a responsible and trusted energy provider, safety
and operational compliance activities are significant and
With accountability and guidance from our Board of Directors
continue to drive investments in our existing gas and electric
and leadership, along with the dedicated efforts of our
employees, we are a trusted energy provider.
Safety is the cornerstone of our responsibility to employees,
customers and communities. We continually provide a safer
workplace for our employees, and safe and reliable energy
options and service for customers within our communities.
Our employees are dedicated to being accountable for
establishing and maintaining the highest standards across
our organization. As leaders in safety, our employees
champion the safety and well-being of fellow coworkers
$1.8B
total assets at December 31, 2019
160+
years operating as an energy delivery company
13
years of superior earnings growth
distribution and gas transmission businesses. Since 2012,
we have invested $144 million in our Gas Reliability
and Infrastructure Project in Florida, improving our gas
distribution systems.
Our commitment to ensuring safety and compliance in
our operations and everyday processes has consistently
led to industry recognition for our efforts to improve service
reliability and sustain employee, customer and community
safety. In 2019, Florida Public Utilities Company and
Aspire Energy earned Safety Achievement Awards from
the American Gas Association.
29
American Gas Association Safety Achievement Awards
earned over the past 17 years
$144M
invested, since 2012, in Gas Reliability and Infrastructure
Project in Florida, improving our gas distribution systems
525+
safety training and outreach events conducted in the last
three years with first responders, firefighters, students
and local businesses
16 / Our Company / Chesapeake Utilities Corporation / 2019 Annual Report
Annual Report 2019 / Chesapeake Utilities Corporation / Our Company / 17
2019 Annual Report / Chesapeake Utilities Corporation / Our Company / 17
Our Company
Chesapeake Utilities Corporation
is a NYSE-traded company (CPK),
headquartered in Dover, Delaware.
Through our operating divisions and
subsidiaries, we are a diversified energy
delivery company engaged in distribution
of natural gas, propane gas and electricity;
the transmission of natural gas; the generation
of electricity and steam; mobile CNG solutions;
and other businesses.
Safety is the
cornerstone of
our responsibility
to employees,
customers and
communities.
TOP:
Across our Company, our employees are vigilant about following
safety guidelines and procedures, and promoting the safety of
our energy services through awareness and training programs
within our organization and communities. Bill Hermstedt,
Manager, Pipeline Safety, left; and Anthony Coker, Training
Coordinator, right, educate and inform local high school
students about the significance of safety within our Company
and the energy industry, while indicating the components of
our Chesapeake Utilities Safety Trailer.
BOTTOM:
Colleen Dalious, Pipeline Locator Technician I, is responsible
for safely and accurately locating gas lines to ensure that
colleagues and contractors can operate in complete safety,
with full knowledge of the location of any underground utility
lines they may encounter.
We are rooted in a tradition of teamwork and leadership
driven by an entrepreneurial spirit that guides us every day.
Our employees, who collaborate across the Company, are
diligent in providing innovative and safe energy solutions
to serve our customers and to support our communities,
while positioning us for continuous long-term growth.
and those we serve. We work collectively with public
officials, emergency responders, customers and safety
advocates to encourage best practices and a broader
safety culture embedded within our local communities.
As a responsible and trusted energy provider, safety
and operational compliance activities are significant and
With accountability and guidance from our Board of Directors
continue to drive investments in our existing gas and electric
and leadership, along with the dedicated efforts of our
employees, we are a trusted energy provider.
Safety is the cornerstone of our responsibility to employees,
customers and communities. We continually provide a safer
workplace for our employees, and safe and reliable energy
options and service for customers within our communities.
Our employees are dedicated to being accountable for
establishing and maintaining the highest standards across
our organization. As leaders in safety, our employees
champion the safety and well-being of fellow coworkers
$1.8B
total assets at December 31, 2019
160+
years operating as an energy delivery company
13
years of superior earnings growth
distribution and gas transmission businesses. Since 2012,
we have invested $144 million in our Gas Reliability
and Infrastructure Project in Florida, improving our gas
distribution systems.
Our commitment to ensuring safety and compliance in
our operations and everyday processes has consistently
led to industry recognition for our efforts to improve service
reliability and sustain employee, customer and community
safety. In 2019, Florida Public Utilities Company and
Aspire Energy earned Safety Achievement Awards from
the American Gas Association.
29
American Gas Association Safety Achievement Awards
earned over the past 17 years
$144M
invested, since 2012, in Gas Reliability and Infrastructure
Project in Florida, improving our gas distribution systems
525+
safety training and outreach events conducted in the last
three years with first responders, firefighters, students
and local businesses
16 / Our Company / Chesapeake Utilities Corporation / 2019 Annual Report
Annual Report 2019 / Chesapeake Utilities Corporation / Our Company / 17
2019 Annual Report / Chesapeake Utilities Corporation / Our Company / 17
Our Company: Business Operations
Natural Gas Transmission
Natural Gas Distribution
and Electric Distribution
EASTERN SHORE NATURAL GAS COMPANY (ESNG)
Owns and operates a 500-mile interstate pipeline that
CHESAPEAKE UTILITIES
transports natural gas from four pipeline interconnection
points in Pennsylvania to customers in Delaware, Maryland
and Pennsylvania. ESNG transports over 50 billion cubic
feet (BCF) of natural gas annually to local distribution
companies, electric power generators and industrial
customers throughout the region. In 2019, ESNG completed
Owns and operates approximately 1,400 miles of gas
distribution mains in Delaware and Maryland. Chesapeake
Utilities distributes natural gas through its Delaware and
Maryland divisions to approximately 70,000 residential,
commercial and industrial customers.
the construction of the largest system expansion project
In December 2019, we entered into an agreement with South
in the Company’s history increasing its capacity by 26%.
Jersey Industries to acquire Elkton Gas. Elkton Gas serves
500 miles of pipeline
50 BCF of natural gas transported a year
PENINSULA PIPELINE COMPANY (PPC)
approximately 7,000 natural gas customers within a franchised
area in Cecil County, MD.
1,400 miles of gas distribution mains
70,000 customers
Owns and operates several intrastate natural gas pipelines
throughout seven counties in Florida. PPC provides
SANDPIPER ENERGY
transportation service that links interstate pipelines to
Serves approximately 11,000 residential, commercial and
local distribution systems, industrial customers and power
industrial customers in Worcester County, MD. Originally
generation facilities. PPC completed recent expansions
comprised of propane distribution systems acquired in
in Northwest Florida and West Palm Beach, FL.
106 miles of pipeline
7counties served throughout Florida
ASPIRE ENERGY
Owns and operates natural gas gathering infrastructure
throughout 40 counties in Ohio. Provides natural gas supplies
to several local distribution companies and cooperatives.
2013, Sandpiper Energy is progressing with more than
9,300 accounts converted from propane gas to natural
gas. Sandpiper Energy currently owns and operates over
300 miles of natural gas distribution mains.
300 miles of gas distribution mains
11,000 customers
FLORIDA PUBLIC UTILITIES COMPANY (FPU)
Primarily sources gas from approximately 300 conventional
Owns and operates approximately 2,900 miles of natural
producers and provides additional services to maintain
gas distribution mains across 21 counties in Florida. FPU
quality and reliability to wholesale markets.
2,700 miles of pipeline
40 counties served throughout Ohio
300 sourced conventional producers
In 2019, we integrated the Delaware, Florida, Maryland and Ohio
transmission operations to promote greater collaboration and
process standardization among similar functional units.
and our Florida division of Chesapeake Utilities Corporation
distribute natural gas to approximately 83,000 customers.
FPU also owns and operates electric utility assets across
four counties in Florida and distributes electricity to
approximately 32,000 customers.
2,900 miles of gas distribution mains
115,000 natural gas and electric customers
256,000
distribution customers
7,906
miles of gas pipeline and distribution mains
86
counties served throughout our business areas
TOP:
Darrel Ragoonath, Measurement Technician II.
BOTTOM:
Patty Connors, Specialist, Safety & Compliance.
Propane Distribution
SHARP ENERGY, INC. AND FLO-GAS
Distribute propane to customers in Delaware, Maryland,
Virginia and southeastern Pennsylvania (Sharp Energy);
and Florida (Flo-Gas). In 2019, we integrated our propane
operations in Delaware, Florida, Maryland, Pennsylvania
and Virginia to promote greater collaboration and process
standardization among similar functional units. Collectively,
Sharp Energy and Flo-Gas distribute propane gas to
approximately 60,000 customers. Sharp AutoGas fuels over
1,500 vehicles and is available at 48 propane fueling stations
in Delaware, Florida, Maryland, Pennsylvania and Virginia.
60,000 customers
1,500 vehicles fueled via AutoGas
Energy Delivery Development
EIGHT FLAGS ENERGY, LLC
Provides electricity and steam generation services through
a combined heat and power (CHP) plant on Amelia Island,
FL, serving approximately 50% of Amelia Island’s demand
for electricity. The CHP plant produces electricity, steam and
water with less air pollutants and water usage, meeting an 80%
efficiency target and cutting overall energy consumption in half.
21 megawatts of baseload power
80% efficiency
MARLIN GAS SERVICES
Maintains one of the largest fleets of compressed natural gas
(CNG) steel tube trailers consisting of various sizes to provide
solutions for all of its customers’ various applications nationwide.
Marlin offers interim and long-term natural gas solutions when
pipeline supplies are not available, traditional methods cannot
meet customer requirements and during pipeline outages.
Marlin continues to actively expand the territories it serves,
as well as to leverage its personnel and technology to serve
liquefied natural gas (LNG) uses and to provide transportation
services for renewable natural gas (RNG) from supply sources
to various pipeline interconnection points.
18 / Our Company / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Our Company / 19
Our Company: Business Operations
Natural Gas Transmission
Natural Gas Distribution
and Electric Distribution
EASTERN SHORE NATURAL GAS COMPANY (ESNG)
Owns and operates a 500-mile interstate pipeline that
CHESAPEAKE UTILITIES
transports natural gas from four pipeline interconnection
points in Pennsylvania to customers in Delaware, Maryland
and Pennsylvania. ESNG transports over 50 billion cubic
feet (BCF) of natural gas annually to local distribution
companies, electric power generators and industrial
customers throughout the region. In 2019, ESNG completed
Owns and operates approximately 1,400 miles of gas
distribution mains in Delaware and Maryland. Chesapeake
Utilities distributes natural gas through its Delaware and
Maryland divisions to approximately 70,000 residential,
commercial and industrial customers.
the construction of the largest system expansion project
In December 2019, we entered into an agreement with South
in the Company’s history increasing its capacity by 26%.
Jersey Industries to acquire Elkton Gas. Elkton Gas serves
500 miles of pipeline
50 BCF of natural gas transported a year
PENINSULA PIPELINE COMPANY (PPC)
approximately 7,000 natural gas customers within a franchised
area in Cecil County, MD.
1,400 miles of gas distribution mains
70,000 customers
Owns and operates several intrastate natural gas pipelines
throughout seven counties in Florida. PPC provides
SANDPIPER ENERGY
transportation service that links interstate pipelines to
Serves approximately 11,000 residential, commercial and
local distribution systems, industrial customers and power
industrial customers in Worcester County, MD. Originally
generation facilities. PPC completed recent expansions
comprised of propane distribution systems acquired in
in Northwest Florida and West Palm Beach, FL.
106 miles of pipeline
7counties served throughout Florida
ASPIRE ENERGY
Owns and operates natural gas gathering infrastructure
throughout 40 counties in Ohio. Provides natural gas supplies
to several local distribution companies and cooperatives.
2013, Sandpiper Energy is progressing with more than
9,300 accounts converted from propane gas to natural
gas. Sandpiper Energy currently owns and operates over
300 miles of natural gas distribution mains.
300 miles of gas distribution mains
11,000 customers
FLORIDA PUBLIC UTILITIES COMPANY (FPU)
Primarily sources gas from approximately 300 conventional
Owns and operates approximately 2,900 miles of natural
producers and provides additional services to maintain
gas distribution mains across 21 counties in Florida. FPU
quality and reliability to wholesale markets.
2,700 miles of pipeline
40 counties served throughout Ohio
300 sourced conventional producers
In 2019, we integrated the Delaware, Florida, Maryland and Ohio
transmission operations to promote greater collaboration and
process standardization among similar functional units.
and our Florida division of Chesapeake Utilities Corporation
distribute natural gas to approximately 83,000 customers.
FPU also owns and operates electric utility assets across
four counties in Florida and distributes electricity to
approximately 32,000 customers.
2,900 miles of gas distribution mains
115,000 natural gas and electric customers
256,000
distribution customers
7,906
miles of gas pipeline and distribution mains
86
counties served throughout our business areas
TOP:
Darrel Ragoonath, Measurement Technician II.
BOTTOM:
Patty Connors, Specialist, Safety & Compliance.
Propane Distribution
SHARP ENERGY, INC. AND FLO-GAS
Distribute propane to customers in Delaware, Maryland,
Virginia and southeastern Pennsylvania (Sharp Energy);
and Florida (Flo-Gas). In 2019, we integrated our propane
operations in Delaware, Florida, Maryland, Pennsylvania
and Virginia to promote greater collaboration and process
standardization among similar functional units. Collectively,
Sharp Energy and Flo-Gas distribute propane gas to
approximately 60,000 customers. Sharp AutoGas fuels over
1,500 vehicles and is available at 48 propane fueling stations
in Delaware, Florida, Maryland, Pennsylvania and Virginia.
60,000 customers
1,500 vehicles fueled via AutoGas
Energy Delivery Development
EIGHT FLAGS ENERGY, LLC
Provides electricity and steam generation services through
a combined heat and power (CHP) plant on Amelia Island,
FL, serving approximately 50% of Amelia Island’s demand
for electricity. The CHP plant produces electricity, steam and
water with less air pollutants and water usage, meeting an 80%
efficiency target and cutting overall energy consumption in half.
21 megawatts of baseload power
80% efficiency
MARLIN GAS SERVICES
Maintains one of the largest fleets of compressed natural gas
(CNG) steel tube trailers consisting of various sizes to provide
solutions for all of its customers’ various applications nationwide.
Marlin offers interim and long-term natural gas solutions when
pipeline supplies are not available, traditional methods cannot
meet customer requirements and during pipeline outages.
Marlin continues to actively expand the territories it serves,
as well as to leverage its personnel and technology to serve
liquefied natural gas (LNG) uses and to provide transportation
services for renewable natural gas (RNG) from supply sources
to various pipeline interconnection points.
18 / Our Company / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Our Company / 19
CORPORATE GOVERNANCE & ESG
Driven By
Commitment
Chesapeake Utilities is a long-standing supporter of Habitat for
Humanity in Delaware and in Florida. Employee volunteers joined
the Central Delaware Habitat for Humanity’s Framing Frenzy event,
held at our Energy Lane complex in Dover, DE. The build-out of the
frames for the Habitat for Humanity home took place at the future
site of our Safety Town, a new safety facility for our Company’s
use, which will provide safety training and awareness for employees,
first responders and our communities.
CORPORATE GOVERNANCE & ESG
Driven By
Commitment
Chesapeake Utilities is a long-standing supporter of Habitat for
Humanity in Delaware and in Florida. Employee volunteers joined
the Central Delaware Habitat for Humanity’s Framing Frenzy event,
held at our Energy Lane complex in Dover, DE. The build-out of the
frames for the Habitat for Humanity home took place at the future
site of our Safety Town, a new safety facility for our Company’s
use, which will provide safety training and awareness for employees,
first responders and our communities.
Corporate Governance & ESG
Named 2019 Governance Team of
the Year by Corporate Secretary
magazine at the 12th Annual
Corporate Governance Awards
Ceremony, recognizing the best
overall corporate governance team
among small to mid-cap companies
in the country.
“This award recognizes the depth of strong
governance practices throughout our organization
and acknowledges our special culture of
discipline, integrity, accountability, authenticity
and diversity. As our long-standing ESG story
continues to unfold, we are honored to be
recognized among our peers in the corporate
governance industry.”
JAMES MORIARTY, EXECUTIVE VICE PRESIDENT,
GENERAL COUNSEL, CORPORATE SECRETARY
AND CHIEF POLICY AND RISK OFFICER
Chesapeake Utilities is strongly committed to sound corporate
governance principles and the highest standards of ethical
conduct. These values are aligned with our culture and are
the foundation for our position on Environmental, Social
and Governance (ESG) considerations.
ESG is embedded in our Company’s DNA and is essential
in determining our strategic priorities, beginning with
guidance and clarity from our Board of Directors to structure
and support provided by leadership, and extending to the
practices of our employees.
A comprehensive effort continues across our Company
where our talented and diverse employees strive to
enhance our ESG approach that is centered on the needs
of our customers and communities. We invest in these
initiatives to sustain our businesses, but more importantly,
because it is the right thing to do. Throughout our business
areas, we continue to identify reliable and efficient
energy solutions and improved options for the safety
and well-being of our customers, while contributing to
the betterment of our communities. Our legacy of caring
also advances our ESG approach within our organization.
Diverse teams and experiences bring value to our Company
and the industry. As such, we promote a workplace that
embraces different backgrounds, perspectives and ideas.
We continue to honor our responsibility to operate in a safe
and environmentally friendly manner and work to improve
our stewardship to facilitate sustainable practices. Our
employees’ support and participation in our community
outreach is invaluable. We encourage our employees to be
involved where they live, work and serve through volunteer
and community partnerships.
As part of our ESG approach, we have established a
Working Group, including leaders from across the business
areas, who are charged with the development, execution
and communications of the Company’s ESG strategy.
The Working Group, with our business areas, ensures
that the appropriate structures and processes are in place
to continuously support the Company’s sustainable goals.
In 2020, we will be unveiling our ESG 160 video that
conveys our established history of ESG practices and
our employee-centric culture.
Please continue to visit our Company’s microsite,
which is the site for our upcoming ESG 160 video at
www.cpkannualreport.com/2019/ and learn more about
our Company initiatives and employees, who enrich our
culture and reinforce our governance principles.
TOP:
In 2019, employee volunteers joined other community partners
to build a playground at the Greater Dover Boys & Girls Club in
Dover, DE. The organization serves more than 1,000 youth a year
and the playground provides children with a safe place to play
in a structured environment. Left to right, are Hyun Lee, Safety,
Compliance and Training Coordinator; and Patrick Conlon,
Senior Program Analyst.
MIDDLE:
For more than 20 years, FPU has championed the fight for the
health of moms and babies as a sponsor of the annual March of
Dimes walk in West Palm Beach, FL.
BOTTOM:
Tom Kosikowski, Senior Data Analyst, assists teammates at
the Habitat for Humanity Framing Frenzy event as Chesapeake
Utilities welcomed the opportunity to build the wall frames of
a home for a local family.
22 / Corporate Governance & ESG / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Corporate Governance & ESG / 23
Corporate Governance & ESG
Named 2019 Governance Team of
the Year by Corporate Secretary
magazine at the 12th Annual
Corporate Governance Awards
Ceremony, recognizing the best
overall corporate governance team
among small to mid-cap companies
in the country.
“This award recognizes the depth of strong
governance practices throughout our organization
and acknowledges our special culture of
discipline, integrity, accountability, authenticity
and diversity. As our long-standing ESG story
continues to unfold, we are honored to be
recognized among our peers in the corporate
governance industry.”
JAMES MORIARTY, EXECUTIVE VICE PRESIDENT,
GENERAL COUNSEL, CORPORATE SECRETARY
AND CHIEF POLICY AND RISK OFFICER
Chesapeake Utilities is strongly committed to sound corporate
governance principles and the highest standards of ethical
conduct. These values are aligned with our culture and are
the foundation for our position on Environmental, Social
and Governance (ESG) considerations.
ESG is embedded in our Company’s DNA and is essential
in determining our strategic priorities, beginning with
guidance and clarity from our Board of Directors to structure
and support provided by leadership, and extending to the
practices of our employees.
A comprehensive effort continues across our Company
where our talented and diverse employees strive to
enhance our ESG approach that is centered on the needs
of our customers and communities. We invest in these
initiatives to sustain our businesses, but more importantly,
because it is the right thing to do. Throughout our business
areas, we continue to identify reliable and efficient
energy solutions and improved options for the safety
and well-being of our customers, while contributing to
the betterment of our communities. Our legacy of caring
also advances our ESG approach within our organization.
Diverse teams and experiences bring value to our Company
and the industry. As such, we promote a workplace that
embraces different backgrounds, perspectives and ideas.
We continue to honor our responsibility to operate in a safe
and environmentally friendly manner and work to improve
our stewardship to facilitate sustainable practices. Our
employees’ support and participation in our community
outreach is invaluable. We encourage our employees to be
involved where they live, work and serve through volunteer
and community partnerships.
As part of our ESG approach, we have established a
Working Group, including leaders from across the business
areas, who are charged with the development, execution
and communications of the Company’s ESG strategy.
The Working Group, with our business areas, ensures
that the appropriate structures and processes are in place
to continuously support the Company’s sustainable goals.
In 2020, we will be unveiling our ESG 160 video that
conveys our established history of ESG practices and
our employee-centric culture.
Please continue to visit our Company’s microsite,
which is the site for our upcoming ESG 160 video at
www.cpkannualreport.com/2019/ and learn more about
our Company initiatives and employees, who enrich our
culture and reinforce our governance principles.
TOP:
In 2019, employee volunteers joined other community partners
to build a playground at the Greater Dover Boys & Girls Club in
Dover, DE. The organization serves more than 1,000 youth a year
and the playground provides children with a safe place to play
in a structured environment. Left to right, are Hyun Lee, Safety,
Compliance and Training Coordinator; and Patrick Conlon,
Senior Program Analyst.
MIDDLE:
For more than 20 years, FPU has championed the fight for the
health of moms and babies as a sponsor of the annual March of
Dimes walk in West Palm Beach, FL.
BOTTOM:
Tom Kosikowski, Senior Data Analyst, assists teammates at
the Habitat for Humanity Framing Frenzy event as Chesapeake
Utilities welcomed the opportunity to build the wall frames of
a home for a local family.
22 / Corporate Governance & ESG / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Corporate Governance & ESG / 23
Corporate Governance & ESG:
Our Culture
The key to our success is our
strong culture that fully engages
our employees and promotes
integrity, accountability and
reliability with the safety of those
we serve as our highest priority.
Chesapeake Utilities is a responsible
company that cultivates a diverse and
high-performance workforce, encouraging
employees to be authentic leaders and
to contribute in meaningful ways.
8
consecutive years recognized as a Top Workplace
955
total employees
32%
women employees
10
years for average employee tenure
8%
of active full-time employees are veterans
Chesapeake Utilities’ Women in Energy committee hosted
a STEM event in Delaware to inform local high school
students about the career opportunities within the energy
industry and specifically at Chesapeake Utilities.
Chesapeake Utilities was recognized as a Top Workplace by
Energage, a research firm that specializes in organizational
health and workplace engagement. The Company was named
a top place to work in Delaware for the eighth consecutive
year, and in central Florida, Florida Public Utilities Company
earned Top Workplace recognition for the first time.
24 / Corporate Governance & ESG / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Corporate Governance & ESG / 25
Preya John, Manager, Propane Operations, conducts a tour for our
Regulatory and Government Affairs team at the Company’s propane
bulk storage facility in Lantana, FL. Left to right, are Justin Mulcahy,
Regulatory & Government Affairs Manager; Jeff Sisolak, Supervisor,
Propane Operations; Preya John, Manager, Propane Operations;
Steve Baccino, Director, Regulatory & Government Affairs; and
Ramiro Sicre, Manager, Governmental Relations.
Corporate Governance & ESG:
Our Culture
The key to our success is our
strong culture that fully engages
our employees and promotes
integrity, accountability and
reliability with the safety of those
we serve as our highest priority.
Chesapeake Utilities is a responsible
company that cultivates a diverse and
high-performance workforce, encouraging
employees to be authentic leaders and
to contribute in meaningful ways.
8
consecutive years recognized as a Top Workplace
955
total employees
32%
women employees
10
years for average employee tenure
8%
of active full-time employees are veterans
Chesapeake Utilities’ Women in Energy committee hosted
a STEM event in Delaware to inform local high school
students about the career opportunities within the energy
industry and specifically at Chesapeake Utilities.
Chesapeake Utilities was recognized as a Top Workplace by
Energage, a research firm that specializes in organizational
health and workplace engagement. The Company was named
a top place to work in Delaware for the eighth consecutive
year, and in central Florida, Florida Public Utilities Company
earned Top Workplace recognition for the first time.
24 / Corporate Governance & ESG / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Corporate Governance & ESG / 25
Preya John, Manager, Propane Operations, conducts a tour for our
Regulatory and Government Affairs team at the Company’s propane
bulk storage facility in Lantana, FL. Left to right, are Justin Mulcahy,
Regulatory & Government Affairs Manager; Jeff Sisolak, Supervisor,
Propane Operations; Preya John, Manager, Propane Operations;
Steve Baccino, Director, Regulatory & Government Affairs; and
Ramiro Sicre, Manager, Governmental Relations.
Corporate Governance & ESG:
Caring is Always in Season
As part of our continued commitment
to the communities where we
live, serve and work, Chesapeake
Utilities supports various community
outreach initiatives.
We partner with national and local
organizations, offering all of our employees
the opportunities to engage in volunteer
events. Through our outreach, we build
lasting relationships with community
members and officials to further the
betterment of the environment, education,
well-being, and economic and social
enrichment of our communities.
665+
employees volunteered in 2019
5,000+
hours volunteered by employees in 2019
$358k
donated to national and local organizations in 2019
$650k
in grant money distributed over the last 15 years
TOP:
Our collective impact is magnified when colleagues throughout
the Company come together to give back to our communities.
Through donations and volunteerism, our business areas partnered
with local food banks and other organizations in support of their
hunger-relief programs within our communities. Left to right, are
Nick Cronell, ADDs Billing Analyst; Kathy Welch, Regulatory Affairs
Consultant; Leona Solomon, Propane Clerk; and Jessica Husted,
Senior Auditor.
BOTTOM:
For the third consecutive year, Sharp Energy made a contribution at the
“Help Our Kids” radiothon to the Nemours Alfred I. duPont Hospital for
Children in Wilmington, DE. The proceeds support the hospital’s Child Life
Program and include donations from an annual fundraiser event and funds
contributed for each gallon of propane gas that the Sharp Energy Nemours
Charity Bobtail delivers. Left to right, are Andy Hesson, Vice President,
Propane Operations; Eric Mays, Director, Marketing; Jessica Coxe, Marketing
Coordinator; Beth Cooper, Executive Vice President and CFO; Suzy Hutchison,
Manager, Marketing & Communications; Mandie Granger, Regional Manager;
and Jim Moriarty, Executive Vice President, General Counsel, Corporate
Secretary, and Chief Policy and Risk Officer.
26 / Corporate Governance & ESG / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Corporate Governance & ESG / 27
Corporate Governance & ESG:
Caring is Always in Season
As part of our continued commitment
to the communities where we
live, serve and work, Chesapeake
Utilities supports various community
outreach initiatives.
We partner with national and local
organizations, offering all of our employees
the opportunities to engage in volunteer
events. Through our outreach, we build
lasting relationships with community
members and officials to further the
betterment of the environment, education,
well-being, and economic and social
enrichment of our communities.
665+
employees volunteered in 2019
5,000+
hours volunteered by employees in 2019
$358k
donated to national and local organizations in 2019
$650k
in grant money distributed over the last 15 years
TOP:
Our collective impact is magnified when colleagues throughout
the Company come together to give back to our communities.
Through donations and volunteerism, our business areas partnered
with local food banks and other organizations in support of their
hunger-relief programs within our communities. Left to right, are
Nick Cronell, ADDs Billing Analyst; Kathy Welch, Regulatory Affairs
Consultant; Leona Solomon, Propane Clerk; and Jessica Husted,
Senior Auditor.
BOTTOM:
For the third consecutive year, Sharp Energy made a contribution at the
“Help Our Kids” radiothon to the Nemours Alfred I. duPont Hospital for
Children in Wilmington, DE. The proceeds support the hospital’s Child Life
Program and include donations from an annual fundraiser event and funds
contributed for each gallon of propane gas that the Sharp Energy Nemours
Charity Bobtail delivers. Left to right, are Andy Hesson, Vice President,
Propane Operations; Eric Mays, Director, Marketing; Jessica Coxe, Marketing
Coordinator; Beth Cooper, Executive Vice President and CFO; Suzy Hutchison,
Manager, Marketing & Communications; Mandie Granger, Regional Manager;
and Jim Moriarty, Executive Vice President, General Counsel, Corporate
Secretary, and Chief Policy and Risk Officer.
26 / Corporate Governance & ESG / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Corporate Governance & ESG / 27
Corporate Governance & ESG:
Our Environmental Responsibility
At Chesapeake Utilities, we draw upon our legacy of
expertise to conduct business with environmental
responsibility. We are strongly committed to operating
in an ecologically-aware manner while increasing
environmental benefits in our communities.
AUTO GAS
CHP
25%
less greenhouse gas emissions
20%
less nitrogen oxide
Up to 60%
less carbon monoxide, less particulate emissions
11
million gallons of gasoline and diesel fuel
displaced since 2013
80%
efficiency target met at Eight Flags Energy CHP Plant—
designed to produce electricity, steam and water with less
air pollutants and water usage
50%+
reduced emissions including greenhouse gases and
reduction in fresh water demand
21
megawatts of baseload power producing enough electricity
to meet on average 50% of customer demand on Amelia
Island in Florida
CNG
SOLAR ( 1)
30%
less greenhouse gas emissions
Up to 85%
less nitrogen oxide
Up to 40%
less carbon dioxide, less particulate emissions
MARLI N GAS SERVICE S
23+
years operating without a single safety incident. Marlin Gas
Services is a supplier of mobile CNG and pipeline solutions,
and maintains a fleet of steel tube CNG trailers, composite
CNG trailers, mobile compression equipment and an internally
developed patented regulator system which allows for delivery
of over 7,000 Dts/d of natural gas.
538
kW-dc total installed capacity at three individual sites
across three business units
2,743
MMbtu of energy conservation
566
metric tons of CO2
reduction
800,000+
kWh of expected annual production
¹Chesapeake Utilities installed solar arrays in three of its business locations
to reduce its carbon footprint and to minimize the commercial electric utility
costs to operate its facilities at Sharp Energy in Georgetown, DE; ESNG’s
compressor station in Bridgeville, DE; and Aspire Energy in Orrville, OH.
As part of our strategic approach, our
businesses strive to identify solutions for
more efficient energy use, generate savings
for our customers and reduce carbon
emissions within our business operations
and the communities we serve.
TOP:
Marlin Gas Services’ fleet consists of steel tube trailers and small capacity
composite and high capacity composite trailers dedicated to transporting
compressed natural gas (CNG) supplies, using its own tractor cabs and
highly trained personnel. An industry leader in mobile compression, Marlin
Gas Services continues to actively expand the territories it serves as well as
leverages its patented technology to potentially serve liquefied natural gas
and renewable natural gas transportation needs.
BOTTOM LEFT:
Chesapeake Utilities provides compressed natural gas (CNG) as an
environmentally friendly alternative fuel for vehicles to reduce emissions
in fleets and personal Natural Gas Vehicles. Throughout the Company, we
partner with local officials and organizations to improve air quality and
increase the use of cleaner fuels for transportation. Left to right, are Dave
Detrick, Manager, Sales and Pre-Customer Integration; John Martin, Business
Development Account Manager; Shane Breakie, Vice President, Chesapeake
Utilities and Sandpiper Energy; and Dean Holden, Manager, Business
Development & Sales.
BOTTOM RIGHT:
Pictured, is the natural gas turbine at our Eight Flags Energy combined
heat and power (CHP) plant on Amelia Island, FL. The CHP plant is designed
to produce electricity, steam and water with less air pollutants and water
usage, meeting an 80% efficiency target; and is modeled to enhance the
overall on-site power transmission lines — keeping power on for customers
in times of need.
28 / Corporate Governance & ESG / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Corporate Governance & ESG / 29
Corporate Governance & ESG:
Our Environmental Responsibility
At Chesapeake Utilities, we draw upon our legacy of
expertise to conduct business with environmental
responsibility. We are strongly committed to operating
in an ecologically-aware manner while increasing
environmental benefits in our communities.
AUTO GAS
CHP
25%
less greenhouse gas emissions
20%
less nitrogen oxide
Up to 60%
less carbon monoxide, less particulate emissions
11
million gallons of gasoline and diesel fuel
displaced since 2013
80%
efficiency target met at Eight Flags Energy CHP Plant—
designed to produce electricity, steam and water with less
air pollutants and water usage
50%+
reduced emissions including greenhouse gases and
reduction in fresh water demand
21
megawatts of baseload power producing enough electricity
to meet on average 50% of customer demand on Amelia
Island in Florida
CNG
SOLAR ( 1)
30%
less greenhouse gas emissions
Up to 85%
less nitrogen oxide
Up to 40%
less carbon dioxide, less particulate emissions
MARLI N GAS SERVICE S
23+
years operating without a single safety incident. Marlin Gas
Services is a supplier of mobile CNG and pipeline solutions,
and maintains a fleet of steel tube CNG trailers, composite
CNG trailers, mobile compression equipment and an internally
developed patented regulator system which allows for delivery
of over 7,000 Dts/d of natural gas.
538
kW-dc total installed capacity at three individual sites
across three business units
2,743
MMbtu of energy conservation
566
metric tons of CO2
reduction
800,000+
kWh of expected annual production
¹Chesapeake Utilities installed solar arrays in three of its business locations
to reduce its carbon footprint and to minimize the commercial electric utility
costs to operate its facilities at Sharp Energy in Georgetown, DE; ESNG’s
compressor station in Bridgeville, DE; and Aspire Energy in Orrville, OH.
As part of our strategic approach, our
businesses strive to identify solutions for
more efficient energy use, generate savings
for our customers and reduce carbon
emissions within our business operations
and the communities we serve.
TOP:
Marlin Gas Services’ fleet consists of steel tube trailers and small capacity
composite and high capacity composite trailers dedicated to transporting
compressed natural gas (CNG) supplies, using its own tractor cabs and
highly trained personnel. An industry leader in mobile compression, Marlin
Gas Services continues to actively expand the territories it serves as well as
leverages its patented technology to potentially serve liquefied natural gas
and renewable natural gas transportation needs.
BOTTOM LEFT:
Chesapeake Utilities provides compressed natural gas (CNG) as an
environmentally friendly alternative fuel for vehicles to reduce emissions
in fleets and personal Natural Gas Vehicles. Throughout the Company, we
partner with local officials and organizations to improve air quality and
increase the use of cleaner fuels for transportation. Left to right, are Dave
Detrick, Manager, Sales and Pre-Customer Integration; John Martin, Business
Development Account Manager; Shane Breakie, Vice President, Chesapeake
Utilities and Sandpiper Energy; and Dean Holden, Manager, Business
Development & Sales.
BOTTOM RIGHT:
Pictured, is the natural gas turbine at our Eight Flags Energy combined
heat and power (CHP) plant on Amelia Island, FL. The CHP plant is designed
to produce electricity, steam and water with less air pollutants and water
usage, meeting an 80% efficiency target; and is modeled to enhance the
overall on-site power transmission lines — keeping power on for customers
in times of need.
28 / Corporate Governance & ESG / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Corporate Governance & ESG / 29
LEADERSHIP & BOARD OF DIRECTORS
Driven By
Leadership
LEADERSHIP & BOARD OF DIRECTORS
Driven By
Leadership
Our Leadership
Jeffry M. Householder
President & Chief Executive Officer
Beth W. Cooper
Executive Vice President,
Chief Financial Officer &
Assistant Corporate Secretary
James F. Moriarty
Executive Vice President, General
Counsel, Corporate Secretary
and Chief Policy and Risk Officer
Joseph D. Steinmetz
Vice President and Controller
Jeffrey R. Tietbohl
Vice President and Chief Operating Officer,
Eastern Shore Natural Gas Company, Peninsula
Pipeline Company and Aspire Energy
Michael D. Cassel
Assistant Vice President,
Regulatory Affairs and
Business Analysis
Jeffrey S. Sylvester
Senior Vice President, Pipeline
Transmission and Regulated
Gas and Electric Distribution
Kevin J. Webber
Senior Vice President,
Unregulated Energy Delivery
and Business Development
Louis J. Anatrella
Vice President and Chief Human
Resources Officer
William D. Hancock
Assistant Vice President,
Fuel Supply and Logistics
Barry D. Kennedy
Assistant Vice President,
Florida Natural Gas Distribution
Stacie L. Roberts
Assistant Vice President
of Corporate Governance
Vikrant A. Gadgil
Vice President and
Chief Information Officer
Shane E. Breakie
Vice President, Chesapeake
Utilities and Sandpiper Energy
Michael D. Galtman
Vice President and
Chief Accounting Officer
Devon S. Rudloff
Assistant Vice President,
Human Resources
Drane A. Shelley
Assistant Vice President,
Florida Electric Distribution
Andrew R. Hesson
Vice President, Propane Operations
Thomas E. Mahn
Vice President and Treasurer
Cheryl M. Martin
Vice President, Regulatory Affairs
32 / Leadership & Board of Directors / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Leadership & Board of Directors / 33
Our Leadership
Jeffry M. Householder
President & Chief Executive Officer
Beth W. Cooper
Executive Vice President,
Chief Financial Officer &
Assistant Corporate Secretary
James F. Moriarty
Executive Vice President, General
Counsel, Corporate Secretary
and Chief Policy and Risk Officer
Joseph D. Steinmetz
Vice President and Controller
Jeffrey R. Tietbohl
Vice President and Chief Operating Officer,
Eastern Shore Natural Gas Company, Peninsula
Pipeline Company and Aspire Energy
Michael D. Cassel
Assistant Vice President,
Regulatory Affairs and
Business Analysis
Jeffrey S. Sylvester
Senior Vice President, Pipeline
Transmission and Regulated
Gas and Electric Distribution
Kevin J. Webber
Senior Vice President,
Unregulated Energy Delivery
and Business Development
Louis J. Anatrella
Vice President and Chief Human
Resources Officer
William D. Hancock
Assistant Vice President,
Fuel Supply and Logistics
Barry D. Kennedy
Assistant Vice President,
Florida Natural Gas Distribution
Stacie L. Roberts
Assistant Vice President
of Corporate Governance
Vikrant A. Gadgil
Vice President and
Chief Information Officer
Shane E. Breakie
Vice President, Chesapeake
Utilities and Sandpiper Energy
Michael D. Galtman
Vice President and
Chief Accounting Officer
Devon S. Rudloff
Assistant Vice President,
Human Resources
Drane A. Shelley
Assistant Vice President,
Florida Electric Distribution
Andrew R. Hesson
Vice President, Propane Operations
Thomas E. Mahn
Vice President and Treasurer
Cheryl M. Martin
Vice President, Regulatory Affairs
32 / Leadership & Board of Directors / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Leadership & Board of Directors / 33
Our Board of Directors
John R. Schimkaitis
DIRECTOR SINCE 1996
Chair of the Board, Retired President
and Chief Executive Officer,
Chesapeake Utilities Corporation
Ronald G. Forsythe, Jr., Ph.D.
DIRECTOR SINCE 2014
Chief Executive Officer, Qlarant
Corporation, Easton, Maryland
Dennis S. Hudson, III
DIRECTOR SINCE 2009
Chair & Chief Executive Officer, Seacoast
National Bank & Seacoast Banking
Corporation of Florida, Stuart, Florida
Eugene H. Bayard
DIRECTOR SINCE 2006
Of Counsel, Morris James LLP,
Georgetown, Delaware
Thomas P. Hill, Jr.
DIRECTOR SINCE 2006
Retired Vice President of Finance & Chief
Financial Officer, Exelon Energy Delivery
Company, Philadelphia, Pennsylvania
Lila A. Jaber
DIRECTOR SINCE 2020
President, Jaber Group Inc.,
Tallahassee, Florida
Thomas J. Bresnan
DIRECTOR SINCE 2001
Owner & President, Career School of
the Rockies and Denver Accounting
Services, Denver, Colorado
Jeffry M. Householder
DIRECTOR SINCE 2019
President and Chief Executive Officer,
Chesapeake Utilities Corporation
Paul L. Maddock, Jr.
DIRECTOR SINCE 2009
Chief Executive Officer and Manager,
Palamad, LLC, Palm Beach, Florida
Our Board of Directors hold a unique set of skills and
expertise that have helped Chesapeake Utilities to
build on its foundation of growth and to continue to
deliver industry-leading results for shareholders and
exceptional service to customers and employees.
Calvert A. Morgan, Jr.
DIRECTOR SINCE 2000
Retired Director and Former Special Advisor,
WSFS Financial Corporation, and Retired
Director and Former Vice Chair, Wilmington
Savings Fund Society (WSFS Bank),
Wilmington, Delaware; Retired Chair,
President & Chief Executive Officer,
PNC Bank, Delaware, Wilmington, Delaware
Dianna F. Morgan
DIRECTOR SINCE 2008
Former Senior Vice President,
Walt Disney World Co., Orlando, Florida;
Past Chair of the Board of Trustees,
University of Florida, Gainesville, Florida
AUDIT COMMITTEE
Thomas J. Bresnan — CHAIR
Ronald G. Forsythe, Jr., Ph.D.
Thomas P. Hill, Jr.
Dennis S. Hudson, III
COMPENSATION COMMITTEE
Dianna F. Morgan — CHAIR
Ronald G. Forsythe, Jr., Ph.D.
Dennis S. Hudson, III
Calvert A. Morgan, Jr.
CORPORATE GOVERNANCE COMMITTEE
Calvert A. Morgan, Jr. — CHAIR
Eugene H. Bayard
Paul L. Maddock, Jr.
Dianna F. Morgan
INVESTMENT COMMITTEE
Jeffry M. Householder — CHAIR
Thomas J. Bresnan
Thomas P. Hill, Jr.
Calvert A. Morgan, Jr.
John R. Schimkaitis
TOP:
Board Member Lila Jaber, founder of the Florida Women in Energy
Leadership Forum, welcomes attendees to the 2019 Florida Women in
Energy Leadership Forum held in St. Petersburg, FL. Jeff Householder,
President and CEO; Beth Cooper, Executive Vice President and CFO; and
Cheryl Martin, Vice President, Regulatory Affairs, had the opportunity to
join Board Member Lila Jaber as speakers on panel discussions at the event.
BOTTOM LEFT:
Left, Board Member Calvert A. Morgan, Jr. is presented with an award from
Rob Eppes, President, Junior Achievement of Delaware, Inc., in honor of
being inducted in the 2019 Delaware Business Leaders Hall of Fame by
the Junior Achievement of Delaware Leadership.
BOTTOM RIGHT:
Our Women in Energy steering committee hosted two motivating events
in DeBary, FL, and Dover, DE, welcoming Board Member Dianna Morgan,
as the featured guest speaker who shared her experiences in the workplace
and encouraged colleagues to continue to seize opportunities to achieve
their greatest potential.
34 / Leadership & Board of Directors / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Leadership & Board of Directors / 35
Our Board of Directors
John R. Schimkaitis
DIRECTOR SINCE 1996
Chair of the Board, Retired President
and Chief Executive Officer,
Chesapeake Utilities Corporation
Ronald G. Forsythe, Jr., Ph.D.
DIRECTOR SINCE 2014
Chief Executive Officer, Qlarant
Corporation, Easton, Maryland
Dennis S. Hudson, III
DIRECTOR SINCE 2009
Chair & Chief Executive Officer, Seacoast
National Bank & Seacoast Banking
Corporation of Florida, Stuart, Florida
Eugene H. Bayard
DIRECTOR SINCE 2006
Of Counsel, Morris James LLP,
Georgetown, Delaware
Thomas P. Hill, Jr.
DIRECTOR SINCE 2006
Retired Vice President of Finance & Chief
Financial Officer, Exelon Energy Delivery
Company, Philadelphia, Pennsylvania
Lila A. Jaber
DIRECTOR SINCE 2020
President, Jaber Group Inc.,
Tallahassee, Florida
Thomas J. Bresnan
DIRECTOR SINCE 2001
Owner & President, Career School of
the Rockies and Denver Accounting
Services, Denver, Colorado
Jeffry M. Householder
DIRECTOR SINCE 2019
President and Chief Executive Officer,
Chesapeake Utilities Corporation
Paul L. Maddock, Jr.
DIRECTOR SINCE 2009
Chief Executive Officer and Manager,
Palamad, LLC, Palm Beach, Florida
Our Board of Directors hold a unique set of skills and
expertise that have helped Chesapeake Utilities to
build on its foundation of growth and to continue to
deliver industry-leading results for shareholders and
exceptional service to customers and employees.
Calvert A. Morgan, Jr.
DIRECTOR SINCE 2000
Retired Director and Former Special Advisor,
WSFS Financial Corporation, and Retired
Director and Former Vice Chair, Wilmington
Savings Fund Society (WSFS Bank),
Wilmington, Delaware; Retired Chair,
President & Chief Executive Officer,
PNC Bank, Delaware, Wilmington, Delaware
Dianna F. Morgan
DIRECTOR SINCE 2008
Former Senior Vice President,
Walt Disney World Co., Orlando, Florida;
Past Chair of the Board of Trustees,
University of Florida, Gainesville, Florida
AUDIT COMMITTEE
Thomas J. Bresnan — CHAIR
Ronald G. Forsythe, Jr., Ph.D.
Thomas P. Hill, Jr.
Dennis S. Hudson, III
COMPENSATION COMMITTEE
Dianna F. Morgan — CHAIR
Ronald G. Forsythe, Jr., Ph.D.
Dennis S. Hudson, III
Calvert A. Morgan, Jr.
CORPORATE GOVERNANCE COMMITTEE
Calvert A. Morgan, Jr. — CHAIR
Eugene H. Bayard
Paul L. Maddock, Jr.
Dianna F. Morgan
INVESTMENT COMMITTEE
Jeffry M. Householder — CHAIR
Thomas J. Bresnan
Thomas P. Hill, Jr.
Calvert A. Morgan, Jr.
John R. Schimkaitis
TOP:
Board Member Lila Jaber, founder of the Florida Women in Energy
Leadership Forum, welcomes attendees to the 2019 Florida Women in
Energy Leadership Forum held in St. Petersburg, FL. Jeff Householder,
President and CEO; Beth Cooper, Executive Vice President and CFO; and
Cheryl Martin, Vice President, Regulatory Affairs, had the opportunity to
join Board Member Lila Jaber as speakers on panel discussions at the event.
BOTTOM LEFT:
Left, Board Member Calvert A. Morgan, Jr. is presented with an award from
Rob Eppes, President, Junior Achievement of Delaware, Inc., in honor of
being inducted in the 2019 Delaware Business Leaders Hall of Fame by
the Junior Achievement of Delaware Leadership.
BOTTOM RIGHT:
Our Women in Energy steering committee hosted two motivating events
in DeBary, FL, and Dover, DE, welcoming Board Member Dianna Morgan,
as the featured guest speaker who shared her experiences in the workplace
and encouraged colleagues to continue to seize opportunities to achieve
their greatest potential.
34 / Leadership & Board of Directors / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Leadership & Board of Directors / 35
Our History
Since 1859, Chesapeake Utilities
Corporation has been energizing
our local communities – providing
energy solutions for more than
160 years.
1948
Two natural gas companies, Citizens Gas
Company, Salisbury, MD, and Sussex Gas
Company, Seaford, DE, were acquired.
1955
Eastern Shore Natural Gas Company (ESNG)
was incorporated in Delaware. By 1966,
ESNG extended a pipeline from Bridgeville,
DE, to Cambridge and Easton, MD.
1959
ESNG extended a pipeline from Parkesburg,
PA, to Salisbury, MD, and began delivering
gas to its customers in the region. During
this time, Chesapeake Utilities Corporation
converted three operating facilities from
propane to natural gas.
In 2019, we were recognized as the longest
continuously running company in Dover, DE.
This is a testament to our employees, customers,
communities and partners who contribute to the
Company’s commitment to a culture of safety,
accountability and growth.
1859
Dover Gas Light Company, a gas company
located on the corner of New and North
Streets in Dover, DE, was started. Dover Gas
Light would eventually become Chesapeake
Utilities Corporation.
1947
Chesapeake Utilities Corporation was
incorporated in Delaware.
1980
Chesapeake Utilities Corporation acquired
its first propane company, Mitchell’s Gas
Service, Laurel, DE.
1981
Clarence E. Sharp Company, Georgetown,
DE, a propane distribution company, was
acquired. Sharpgas, Inc., dba Sharp Energy,
was formed to consolidate Chesapeake’s
propane distribution operations.
1985
Central Florida Gas Company, Winter Haven,
FL, a natural gas distribution company, was
acquired. Chesapeake Utilities Corporation’s
common stock began trading on the NASDAQ
National Market System.
1986
Cambridge Gas Company, Cambridge,
MD, a natural gas distribution company,
was acquired.
1988
Plant City Natural Gas Company, Plant City,
FL, a natural gas distribution company,
and Kellam Energy Inc., Belle Haven, VA,
a propane company, were both acquired.
1993
Chesapeake Utilities Corporation began
trading on the NYSE as CPK.
1998
Central Florida Gas Company’s service
territory expanded to include Gadsden and
Citrus Counties.
2015
2018
The Company completed the merger of
Gatherco, Inc. into Aspire Energy of Ohio,
LLC, to provide natural gas midstream services,
processing and transportation services.
The Company purchased the operating
assets of Chipola Propane Gas Company
in Marianna, FL, expanding our propane
presence in Northwest Florida.
2009
The Company completed the acquisition
of Florida Public Utilities Company, which
distributes natural gas, propane gas and
electricity throughout Florida.
2013
Chesapeake Utilities Corporation initiated
service of its Sharp Energy AutoGas,
a viable alternative fuel for automobiles
that reduces emissions and lowers costs.
The Company purchased the operating
assets of Eastern Shore Gas, now operating
as Sandpiper Energy, Inc., to provide service
to customers in Worcester County, MD.
The Company acquired Marlin Gas Services,
a virtual pipeline providing energy solutions
throughout the nation. Marlin maintains one
of the largest fleets of steel trailers dedicated
to compressed natural gas transport; and
leverages its patented regulator system to
potentially serve liquefied natural gas and
renewable natural gas transportation needs.
The propane operating assets of Ohl
Propane were purchased, providing propane
service to more than 2,500 residential and
commercial customers in Carbon, Monroe,
Northampton, Lehigh, and Schuylkill
Counties in Pennsylvania.
2019
Chesapeake Utilities Corporation completed
and placed in-service the Eastern Shore
Natural Gas 2017 Expansion, the single
largest transmission system expansion in the
Company’s history. The expansion increased
delivery capacity by 26%, and helps to meet
the growing energy requirements of southern
Delaware and the Eastern Shore of Maryland.
Chesapeake Utilities Corporation celebrated
25 years of being listed on the NYSE by
ringing The Opening Bell® at the NYSE.
The propane operating assets of Boulden
Propane in Newark, DE, were acquired,
increasing service to an additional 5,200
residential and commercial customers.
The Company opened its new compressed
natural gas (CNG) fueling station in Dover,
DE, providing an alternative fuel to reduce
emissions in transportation applications.
The Company entered into an agreement
to acquire Elkton Gas, providing natural
gas to approximately 7,000 residential and
commercial customers in Cecil County, MD.
2016
Chesapeake Utilities Corporation celebrated
the commencement of operations for
Eight Flags Energy, LLC, the Company’s first
combined heat and power plant, located
on Amelia Island in Fernandina Beach, FL.
The plant generates approximately 21
megawatts of baseload power, producing
enough electricity to meet 50% of the
Island’s demand.
Chesapeake Utilities Corporation rings
The Closing Bell® at the NYSE.
2017
Chesapeake Utilities Corporation expanded
its natural gas service in Escambia County,
FL, distributing natural gas to the city of
Pensacola and surrounding areas.
The Company placed into service an
AutoGas propane fueling station for fleet
vehicles located near the Baltimore/
Washington International (BWI) Airport.
Airport shuttles, school bus companies,
and commercial fleets use this new fueling
station to power their fleets with propane,
a preferred alternative fuel option that
reduces emissions and yields savings.
36 / Our History / Chesapeake Utilities Corporation / 2019 Annual Report
2019 Annual Report / Chesapeake Utilities Corporation / Our History / 37
Our History
Since 1859, Chesapeake Utilities
Corporation has been energizing
our local communities – providing
energy solutions for more than
160 years.
1948
Two natural gas companies, Citizens Gas
Company, Salisbury, MD, and Sussex Gas
Company, Seaford, DE, were acquired.
1955
Eastern Shore Natural Gas Company (ESNG)
was incorporated in Delaware. By 1966,
ESNG extended a pipeline from Bridgeville,
DE, to Cambridge and Easton, MD.
1959
ESNG extended a pipeline from Parkesburg,
PA, to Salisbury, MD, and began delivering
gas to its customers in the region. During
this time, Chesapeake Utilities Corporation
converted three operating facilities from
propane to natural gas.
In 2019, we were recognized as the longest
continuously running company in Dover, DE.
This is a testament to our employees, customers,
communities and partners who contribute to the
Company’s commitment to a culture of safety,
accountability and growth.
1859
Dover Gas Light Company, a gas company
located on the corner of New and North
Streets in Dover, DE, was started. Dover Gas
Light would eventually become Chesapeake
Utilities Corporation.
1947
Chesapeake Utilities Corporation was
incorporated in Delaware.
1980
Chesapeake Utilities Corporation acquired
its first propane company, Mitchell’s Gas
Service, Laurel, DE.
1981
Clarence E. Sharp Company, Georgetown,
DE, a propane distribution company, was
acquired. Sharpgas, Inc., dba Sharp Energy,
was formed to consolidate Chesapeake’s
propane distribution operations.
1985
Central Florida Gas Company, Winter Haven,
FL, a natural gas distribution company, was
acquired. Chesapeake Utilities Corporation’s
common stock began trading on the NASDAQ
National Market System.
1986
Cambridge Gas Company, Cambridge,
MD, a natural gas distribution company,
was acquired.
1988
Plant City Natural Gas Company, Plant City,
FL, a natural gas distribution company,
and Kellam Energy Inc., Belle Haven, VA,
a propane company, were both acquired.
1993
Chesapeake Utilities Corporation began
trading on the NYSE as CPK.
1998
Central Florida Gas Company’s service
territory expanded to include Gadsden and
Citrus Counties.
2015
2018
The Company completed the merger of
Gatherco, Inc. into Aspire Energy of Ohio,
LLC, to provide natural gas midstream services,
processing and transportation services.
The Company purchased the operating
assets of Chipola Propane Gas Company
in Marianna, FL, expanding our propane
presence in Northwest Florida.
2009
The Company completed the acquisition
of Florida Public Utilities Company, which
distributes natural gas, propane gas and
electricity throughout Florida.
2013
Chesapeake Utilities Corporation initiated
service of its Sharp Energy AutoGas,
a viable alternative fuel for automobiles
that reduces emissions and lowers costs.
The Company purchased the operating
assets of Eastern Shore Gas, now operating
as Sandpiper Energy, Inc., to provide service
to customers in Worcester County, MD.
The Company acquired Marlin Gas Services,
a virtual pipeline providing energy solutions
throughout the nation. Marlin maintains one
of the largest fleets of steel trailers dedicated
to compressed natural gas transport; and
leverages its patented regulator system to
potentially serve liquefied natural gas and
renewable natural gas transportation needs.
The propane operating assets of Ohl
Propane were purchased, providing propane
service to more than 2,500 residential and
commercial customers in Carbon, Monroe,
Northampton, Lehigh, and Schuylkill
Counties in Pennsylvania.
2019
Chesapeake Utilities Corporation completed
and placed in-service the Eastern Shore
Natural Gas 2017 Expansion, the single
largest transmission system expansion in the
Company’s history. The expansion increased
delivery capacity by 26%, and helps to meet
the growing energy requirements of southern
Delaware and the Eastern Shore of Maryland.
Chesapeake Utilities Corporation celebrated
25 years of being listed on the NYSE by
ringing The Opening Bell® at the NYSE.
The propane operating assets of Boulden
Propane in Newark, DE, were acquired,
increasing service to an additional 5,200
residential and commercial customers.
The Company opened its new compressed
natural gas (CNG) fueling station in Dover,
DE, providing an alternative fuel to reduce
emissions in transportation applications.
The Company entered into an agreement
to acquire Elkton Gas, providing natural
gas to approximately 7,000 residential and
commercial customers in Cecil County, MD.
2016
Chesapeake Utilities Corporation celebrated
the commencement of operations for
Eight Flags Energy, LLC, the Company’s first
combined heat and power plant, located
on Amelia Island in Fernandina Beach, FL.
The plant generates approximately 21
megawatts of baseload power, producing
enough electricity to meet 50% of the
Island’s demand.
Chesapeake Utilities Corporation rings
The Closing Bell® at the NYSE.
2017
Chesapeake Utilities Corporation expanded
its natural gas service in Escambia County,
FL, distributing natural gas to the city of
Pensacola and surrounding areas.
The Company placed into service an
AutoGas propane fueling station for fleet
vehicles located near the Baltimore/
Washington International (BWI) Airport.
Airport shuttles, school bus companies,
and commercial fleets use this new fueling
station to power their fleets with propane,
a preferred alternative fuel option that
reduces emissions and yields savings.
36 / Our History / Chesapeake Utilities Corporation / 2019 Annual Report
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