2 0 2 4 A N N U A L R E P O R T
DELIVERING
WITH PURPOSE
REACHING NEW HEIGHTS
Joining the Chesapeake Utilities Corporation team
from Florida City Gas has been a rewarding choice —
both personally and professionally. The Company’s
rapid growth, diverse opportunities and close-knit
culture have not only expanded my own horizon
but also enabled me to advance my career.”
—MARJORIE MACHUCA, MARKETING COMMUNICATIONS MANAGER
2024 ANNUAL REPORT |
1
LETTER FROM THE
CHAIR OF THE BOARD,
PRESIDENT AND CEO
As 2023 came to a close, we embarked
on our next phase of transformation:
we had just completed the acquisition
of Florida City Gas (FCG), a transaction
that grew our asset base by nearly
50%. What excited us most about this
transaction was the ability to extend our
foundation of operational excellence
to meet the growing demand in FCG’s
markets, including shortfalls in natural
gas capacity in southern Florida. While
we saw many opportunities ahead of
us, we remained equally focused on the present: meeting the
expectations of shareholders, regulators, employees and most
importantly, the new and existing communities we serve.
In many companies, integrating such a large acquisition would
have been the single largest priority for the year, but not here
at Chesapeake Utilities. This acquisition only solidified our
strategic intentions for 2024 — integrating FCG (operationally,
as well as culturally) and moving forward immediately as One
Company to sustain top-quartile performance and advance the
three pillars of our core business strategy: prudent allocation of
capital, proactive management of our regulatory strategy and
continual transformation of our business operations.
Our theme for the 2024 annual report – Delivering with
Purpose, Reaching New Heights – captures how we operate
every day, at all levels across the Company. Whether delivering
energy or top-quartile financial results, we start each year
with high expectations from our stakeholders and ourselves.
Then we move forward by managing a multitude of initiatives
to better serve our expanding service areas and growing
customer demand, while generating industry-leading
shareholder returns.
Dear Fellow Shareholders,
2024 was an exciting, pivotal year for
Chesapeake Utilities. We remained
unwavering in our mission to deliver
energy that makes life better for
the communities we serve, and
we successfully repositioned the
Company as a much larger, more
scalable enterprise.
Delivering with
purpose, reaching
new heights isn’t just
a marketing phrase;
it’s the embodiment
of how we operate
each and every day at
all levels across the
company. In 2024, we
invested in our service
areas, strengthened
regulatory collaboration
and drove continuous
improvements to
meet the needs of
our customers and
growing organization.”
~50%
INCREASE IN
ASSET BASE
with FCG
acquisition
JEFF HOUSEHOLDER
| CHESAPEAKE UTILITIES CORPORATION
2
DELIVERING WITH PURPOSE…
Our foundation of operational excellence underlies every action
we take across the Company. By effectively transporting and
delivering energy, we are able to meet growing customer
demand, add new customers, expand our transportation
capacity and extend our infrastructure to new service areas
and for new purposes. We are a trusted partner in helping to
promote economic development and employment opportunities
in the states and communities we serve.
OUR FLORIDA NATURAL GAS DISTRIBUTION
BUSINESS GREW SUBSTANTIALLY IN 2024,
ADDING MORE THAN 6,700 NEW CUSTOMERS
ACROSS THE STATE.
…REACHING NEW HEIGHTS
Over the years, you may have heard us say we are beneficiaries
of our geography. This is a privilege that we take very seriously,
as our customers rely on us every day to operate safely and
deliver energy to their homes and businesses. We are excited
and grateful for the opportunity to meet the significant demand
and customer growth across the communities we serve.
In our Delmarva Peninsula operations, which includes
transmission and distribution service to industrial, commercial
and residential customers primarily in Maryland and Delaware,
we have seen significant customer growth, adding 4,480
new customers throughout 2024 and delivering an additional
430,000 Dth of natural gas above 2023 levels. Over the
last year, we have expanded 65 miles of transportation
infrastructure to serve industrial growth in the manufacturing,
distribution and sales sectors, and continue to transition
customers from propane community gas systems to natural gas
service. We have also expanded service to a number of new
residential communities throughout Delaware.
In Florida, above-average customer growth and demand for
natural gas enabled us to expand distribution in our existing
service areas and invest in our newly-acquired FCG service
areas. Across the state, we have added 6,700 new customers
throughout 2024, including 227 commercial and industrial
customers — nearly 39% of that growth has been related
to FCG. We also initiated or advanced 12 projects to extend
natural gas service to new residential communities across the
state, including completing the next phase of expansion in
Newberry and breaking ground on projects in St. Cloud, Lake
Wales, Lake Mattie and Plant City in Central Florida. Along
the coast, we began construction on projects to serve new
customers in New Smyrna Beach, Port St. Lucie and Boynton
Beach, along with continuing to build out the growing Wildlight
community near our corporate office in Fernandina Beach.
Safety is always at the
forefront of our operational
excellence mindset. This year,
we have been particularly
focused on enhancing a
culture of operational safety
and risk mitigation and on
implementing systems that
collect, assess and promptly
address safety opportunities
and incidents. At the start
of 2024, we implemented
a Safety Data Management
System (SDMS), which
included incident reporting
workflow and near-miss
reporting capabilities.
This system was rolled
out alongside an updated
Enterprise Safety Incentive
Program that combined
monthly educational
programming with interactive
safety challenges designed
to improve all teammates’
understanding of, and
focus on, personal and
operational safety.
Ensuring safety for our teammates and
communities, serving our customers,
strengthening our systems and
prudently managing expenses is the
foundation for everything we do.
2024 ANNUAL REPORT |
3
SAFETY FIRST:
Colleen Kennedy, Integrity Tech I at Eastern Shore
Natural Gas (ESNG), conducts critical procedures
like cathodic protection surveys and right-of-way
patrols—ensuring precision, documentation and the
protection of ESNG’s infrastructure.
MARLIN GAS SERVICES SUPPORTS BUSINESSES
AND UTILITIES WITH NATURAL GAS PEAKING
SERVICES AND VIRTUAL PIPELINE SOLUTIONS.
Demand for compressed natural gas
(CNG) transportation through our Marlin
Gas Services virtual pipeline was also
a key highlight in 2024. In addition to
delivering renewable natural gas (RNG),
liquefied natural gas (LNG) and hydrogen,
Marlin delivered 244,000 Dth of CNG to
22 customers, a 44% increase over 2023
that generated an additional $4.5 million
in adjusted gross margin in 2024. We’ll
continue to leverage Marlin Gas Services
to meet CNG, RNG and LNG demand
growth and provide interim service as
a bridge to meet customer needs for
delivery of energy through construction
of natural gas infrastructure.
44%
INCREASE
IN CNG
DELIVERY
| CHESAPEAKE UTILITIES CORPORATION
4
PRUDENT CAPITAL DEPLOYMENT
If you have heard me speak even once this past year, you will recall
that when I talk about our growth strategy, I always come back to
our three pillars. The first, prudent capital deployment, is driven by
numerous growth opportunities.
In 2024, we invested $356 million of capital — a record level of
organic capital investment at the upper end of our initial annual
guidance of $300 - $360 million for the year, and well on the
way toward our five-year capital forecast of $1.5 - $1.8 billion.
Our regulated businesses accounted for 90% of total capital
spend as we invested in our Florida and Delmarva transmission
and distribution systems and upgraded technology systems
across the enterprise.
On the infrastructure side, we invested nearly $66 million under
GUARD and SAFE, which are 10-year programs that enhance
safety, reliability and accessibility for our Florida Public Utilities
(FPU) and FCG systems. We also invested approximately $37
million in system-strengthening projects under the Eastern Shore
Natural Gas (ESNG) Capital Surcharge program and Storm
Protection Projects for our Florida electric system. Beyond
increased system performance and resiliency, these programs
operate under approved regulatory mechanisms, which provide
timely recovery for investments, contributing over $13 million of
2024 adjusted gross margin from GUARD and SAFE.
THE FULL CIRCLE DAIRY RNG PRODUCTION
FACILITY WAS COMPLETED IN OCTOBER 2024
AND IS EXPECTED TO PRODUCE 100,000 DTH
ANNUALLY, REDIRECTING MORE THAN 1,100
METRIC TONS OF METHANE.
$356M
CAPITAL INVESTMENT,
OF WHICH 90% WAS
REGULATED INVESTMENT
13
MAJOR CAPITAL PROJECTS
FILED AND APPROVED
SINCE Q1 2024
PILLAR 1
In October 2024, we celebrated the completion of Full Circle Dairy,
a $28 million facility, which converts dairy manure to pipeline-quality
RNG. This project leverages our pipeline and Marlin Gas Services
businesses, as we transport pipeline-quality RNG to our customers,
and aligns with our vision to contribute to a more sustainable future
and generate value for the local community.
Throughout 2024, we also received approval from the Florida
Public Service Commission (PSC) for 11 new transmission
infrastructure projects within our Peninsula Pipeline Company
(PPC) subsidiary, totaling approximately $165 million in capital
investment. Many of these projects were driven by our newly-
acquired FCG service areas, including three RNG transportation
projects that total $46 million of capital investment and demand
growth driven by several new residential communities.
We also requested Florida PSC approval for the Miami Inner Loop
project in September 2024, a new $40 million project to leverage
capacity within the Miami metro region, and received approval in
February 2025. This project is the next step toward building out
additional natural gas transmission infrastructure to address current
constraints and customer demand in that region.
We made significant progress on permitting, easements and
engineering design for our Worcester Resiliency Upgrade (WRU)
project, an $80 million liquefied natural gas storage facility at the
southern end of our service area in Maryland. In January 2025,
we received unanimous Federal Energy Regulatory Commission
(FERC) approval of the project; we expect the system to be
in service by Q3 2025 to meet critical demand and moderate
customer prices during winter heating peaks.
2024 ANNUAL REPORT |
5
PROACTIVE REGULATORY STRATEGY
Our second pillar, strategic regulatory management, ensures that we are able to engage in cost-effective
system improvements that meet growing customer demand for safe, reliable and affordable energy.
We consider rate case filings to be just one of many levers within our regulatory strategy, and for many
years — or decades, in some cases — we managed increases in cost of service through demand growth.
However, as we enter new and transformative stages of growth, updating rates has been essential to
support increased investments and maintain high-quality service.
Following the successful completion of our FPU natural gas rate case in 2023, we filed three distribution
rate cases in 2024 to bring rates in all regulatory jurisdictions up to date.
5
RATE CASES AND
DEPRECIATION STUDIES
FILED IN 2024
$50M
ADDITIONAL INVESTMENT
DOLLARS
APPROVED BY
THE FLORIDA PSC FOR
FCG’S SAFE PROGRAM
PILLAR 2
FPU’S GUARD PROGRAM AND FCG’S SAFE PROGRAM
enhance the safety, reliability and accessibility of our
natural gas distribution system through replacement
of mains and service lines and the maintenance and
replacement of equipment and system reliability projects.
J In January, we requested updated rates for our Maryland
utilities, the first rate case for that jurisdiction since 2018.
In addition to several tariff changes, we proposed the
consolidation of our three Maryland natural gas entities.
Following positive settlement discussions, we received
approval of a $1.2 million depreciation expense decrease and
a $2.6 million rate adjustment. We expect these incremental
rates to go into effect in the first half of 2025, pursuant to a
joint rate case filing currently underway.
J In August, we filed two rate cases — the first for our Delaware
jurisdiction (the first in seven years), and the second for our
Florida Electric jurisdiction. We were pleased to receive over $4
million in interim rate relief across both cases in late 2024 and
expect final rates for both cases to be effective in mid-2025.
At the start of 2024, we also aligned FCG’s SAFE Program with
FPU’s GUARD Program, resulting in a request for an additional
$50 million of SAFE Program investment. In September 2024,
the Florida PSC approved this request, authorizing cumulative
investment under these programs of at least $460 million over
the next 10 years.
Across the organization, we raised the bar for regulatory
activity, managing multiple cases and filing for approval of 13
transmission projects throughout the year. This is a testament to
the diligence and innovation of our regulatory team that remains
relentlessly focused on constructive relationships with our
regulators and cost-effective service for our customers.
| CHESAPEAKE UTILITIES CORPORATION
6
J We began the year focused on welcoming
178 Florida City Gas teammates into the
Chesapeake Utilities family and operating
as One Company. We also continued our
leadership development, succession planning
and employee satisfaction initiatives. I am consistently inspired by our teammates’
engagement with one another and in the communities in which we live and work,
and am grateful for their daily dedication to our stakeholders.
J Our teams are encouraged and empowered to identify and implement
operational changes that improve accuracy, efficiency and effectiveness.
In the last year, we have implemented improvements, both big and small, related
to capital project operations, forecasting/budgeting, information technology
controls and enterprise health and safety, to name a few. In addition, we have
fundamentally restructured our billing, call center, customer account and field
service functions as part of the 1CX implementation discussed below.
J In August, we implemented 1CX, a year-long process to upgrade our regulated
distribution customer information and field service management systems into one
consolidated SAP-hosted system. Through this Companywide cross-functional effort,
we consolidated operations across our footprints and standardized customer service and
emergency response procedures. I’m proud of our teams that worked together to design
and implement this system and look forward to extending 1CX to our FCG operations and
seeing the additional benefits this implementation will bring in 2025 and beyond.
J In addition to 1CX, we have been improving our organizational structure to enable
increased operational effectiveness as we continue to grow. During 2024, we
consolidated and centralized several key functions, including customer care,
construction and operational services and business development, improving
our ability to efficiently meet our customers’ needs and execute on our growth
trajectory. We see additional consolidation and optimization opportunities across
the organization and will leverage our successes into additional areas in 2025.
PEOPLE
SYSTEMS
PROCESS
STRUCTURE
CONTINUOUS BUSINESS TRANSFORMATION
As demonstrated by progress in our capital investment and
regulatory strategy pillars, 2024 was a year of significant growth
and transformation for Chesapeake Utilities. However, as I said in
last year’s letter, “transformational growth requires transformational
capabilities.” This growth, along with all future progress, is only
possible with continual and substantial improvements in our
workforce, operational processes, technological systems and
organizational structure.
Continual business transformation remains a key pillar within
our growth strategy as we continue to build and refine systems
and processes to support us through our ongoing growth
transformation, and for years to come.
178
FCG TEAM MEMBERS
INTEGRATED AS ONE COMPANY
1CX
IMPLEMENTATION
SAP-HOSTED CUSTOMER
INFORMATION/FIELD SERVICE
MANAGEMENT SYSTEM
2024 ANNUAL REPORT |
7
| CHESAPEAKE UTILITIES CORPORATION
8
BALANCE SHEET STRENGTH AND
INDUSTRY-LEADING SHAREHOLDER VALUE
For many companies, transformational years come at a cost to
balance sheet strength or financial performance. However, the
opposite is true for us, as we never let growth hamper our ability
to meet or exceed our targets.
We generated $121.5 million of Adjusted Net Income, or $5.39 in
Adjusted Diluted Earnings per Share, in 2024, squarely within our
guidance range and representing 24% growth in Adjusted Net
Income over 2023. We are proud to continue our track record
of hitting our targets and record our 18th year of consecutive
earnings growth. This translates to nearly an 8% compounded
annual growth rate since 2018.
In addition to strong earnings growth, we increased our dividend
by 20 cents in 2024, resulting in an annualized dividend of $2.56
and a 9.6% compounded annual growth rate since 2018. While
we continued our 64-year history of consecutive annual dividend
payments, we also remain committed to reinvesting at least 50%
of our retained earnings back into the business to support our
growing capital investment program, earnings growth and our
commitment to industry-leading total shareholder return.
Amidst our multiple operational priorities in 2024, we also
strengthened our balance sheet. In the third quarter, we upsized
and extended our revolving credit facilities to $450 million, with
$200 of this available through 2029. We finished the year with
72% of our debt capacity available, including $250 million of
available short-term borrowing capacity under the revolving
credit facilities and an additional $255 million of available long-
term debt capacity under two shelf agreements.
We also improved our capital structure by issuing approximately
$80 million of new equity throughout the year, bringing our
equity-to-total capitalization ratio to over 48%. We have
committed to return to our target equity-to-total capitalization
range by the end of 2025 and the additional equity issued in
2024 moved us closer toward this target.
In the fourth quarter, we issued $100 million of five-year senior
notes and announced a $100 million at-the-market equity
offering program, additional examples of our execution and
commitment to a strong balance sheet to support future growth.
The combination of financial performance,
balance sheet stability and above-average
growth opportunities continues to drive
top-quartile shareholder return.
For full-year 2024, we saw a 15% increase in our share price,
resulting in a 17% total shareholder return. Investors in
the November 2023 equity issuance to help fund the FCG
acquisition have experienced an even greater return — 50%
as of February 28, 2025. We remain committed to accessing
competitively-priced capital to ensure we successfully finance
the Company’s continued growth.
18th
YEAR
CONSECUTIVE
EARNINGS GROWTH1
9.6%
COMPOUNDED ANNUAL
DIVIDEND GROWTH RATE
64
CONSECUTIVE YEARS
OF DIVIDEND PAYMENTS
17%
TOTAL SHAREHOLDER
RETURN
IN 2024
DYLAN TEARLE, FCG GAS UTILITY WORKER
1 Utilizing adjusted EPS.
2024 ANNUAL REPORT |
9
WE’RE JUST GETTING STARTED
When I wrote to you a year ago to reflect on our
2023 performance, I discussed our prior periods
of significant growth: between 2010 and 2019, we
doubled the company twice, and then doubled it again
between 2019 and 2023. However, I didn’t see this
trajectory changing anytime soon, and I ended last
year’s letter with “I think we’re just getting started.”
One year later, as I consider how much we
accomplished in 2024, I cannot imagine a better start
to our next phase of growth. I am more committed to
this business than ever and am excited for the years
to come. We continue to maintain our commitment
to our long-term capital investment and earnings
guidance through 2028, representing $1.5-$1.8 billion
and an 8% EPS compound annual growth rate. Our
continued confidence in achieving this guidance is
grounded in the opportunities
we see ahead of us. Our service
areas continue to provide
substantial opportunities for
growth, from critical natural
gas infrastructure projects and
medium-scale RNG transmission
projects to large-scale LNG
transportation and storage
opportunities. We’ll continue to
work with regulators to ensure
cost-effective and safe energy
delivery for all customers. And we’ll keep investing in
our people, processes, systems and structure to ensure
our organization is capable of maintaining operational
excellence as we grow.
Growing demand for energy delivery is the force that
drives and guides our capital deployment, regulatory
strategy and business transformation efforts. Serving
this demand has been a key driver of our strong
performance over the last year and will be the basis
for our ability to deliver with purpose and reach new
heights in 2025 and beyond.
Thank you for your continued support of, and trust in,
Chesapeake Utilities Corporation.
Sincerely,
Jeff Householder
Chair of the Board, President and CEO
25%
GROWTH IN
ADJUSTED
GROSS MARGIN
OVER 2023
WABASSO CAUSEWAY BRIDGE,
INDIAN RIVER COUNTY, FLORIDA
| CHESAPEAKE UTILITIES CORPORATION
10
| CHESAPEAKE UTILITIES CORPORATION
10
FLORIDA OPERATIONS
HEADQUARTERS
2024 ANNUAL REPORT |
11
Our 2024 results again demonstrated exceptional operational
and financial performance as we focused on the three pillars
of our growth strategy. Prudently deploying capital is the first
pillar, and in 2024, we reached record levels of investment,
with $356 million of capital expenditures as we improved the
reliability of our existing systems and expanded to serve new
areas. We also accelerated our return toward our target capital
structure while maintaining a strong balance sheet, preparing
us to finance our next stages of growth.”
—BETH W. COOPER, EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER,
TREASURER AND ASSISTANT CORPORATE SECRETARY
A proactive regulatory agenda is the second pillar of our strategy.
In 2024, we filed three rate cases and two depreciation studies. In
addition, we secured approval for over a dozen projects across our
service territories, including receiving unanimous FERC approval
for our Worcester Resiliency Upgrade project. We also made
several filings to enhance our infrastructure reliability and energy
conservation programs. Throughout, we remain focused on delivering
excellence for all stakeholders in a manner consistent with long-
term growth and success. We will continue to meet the needs of
our customers and the communities we proudly serve by delivering
affordable and reliable energy, so that no one is left behind.”
—JAMES F. MORIARTY, EXECUTIVE VICE PRESIDENT, GENERAL COUNSEL,
CORPORATE SECRETARY AND CHIEF POLICY AND RISK OFFICER
In 2024, we significantly enhanced our scalability by
acquiring FCG and implementing the 1CX customer
billing system. These strategic moves allowed us to
streamline and standardize various internal functions,
including customer care, construction services, enterprise
health and safety and business information systems.
This transformation has positioned us to operate more
effectively and efficiently as we continue to grow.”
—JEFFREY S. SYLVESTER, SENIOR VICE PRESIDENT
AND CHIEF OPERATING OFFICER
| CHESAPEAKE UTILITIES CORPORATION
12
4 Amounts exclude transaction and transition-related costs associated with Florida City Gas (FCG) acquisition.
2024
2023
2024/2023
% CHANGE
2022
2023/2022
% CHANGE
ADJUSTED GROSS MARGIN1
$ 567.4
$ 454.1
25%
$ 420.2
8%
OPERATING INCOME
$ 228.2
$ 150.8
51%
$ 142.9
6%
NET INCOME
$ 118.6
$ 87.2
36%
$ 89.8
-3%
ADJUSTED NET INCOME2
$ 121.5
$ 97.8
24%
$ 89.8
9%
DILUTED EARNINGS PER SHARE
GAAP
$ 5.26
$ 4.73
11%
$ 5.04
-6%
Adjusted 2
$ 5.39
$ 5.31
2%
$ 5.04
5%
ANNUALIZED DIVIDENDS PER SHARE
$ 2.56
$ 2.36
8%
$ 2.14
10%
TOTAL ASSETS
$ 3,577.0
$ 3,304.7
8%
$ 2,215.0
49%
STOCKHOLDERS' EQUITY
$ 1,390.2
$ 1,246.1
12%
$ 832.8
50%
OTHER
EMPLOYEES AT YEAR-END
1,237
1,281
-3%
1,034
24%
SHARES OUTSTANDING AT YEAR-END
22,898,833
22,235,337
3%
17,741,418
25%
AVERAGE DISTRIBUTION CUSTOMERS3
451,805
441,895
2%
309,915
43%
1 Adjusted Gross Margin is a non-GAAP (Generally Accepted Accounting Principles) measure.
2 Amounts exclude transaction and transition-related costs associated with Florida City Gas (FCG) acquisition.
3 Customer totals for FCG reflect actual amounts at December 31, 2023 since the period from the acquisition covered only one month.
Dollars in millions,
except per share data.
FINANCIAL HIGHLIGHTS
2020
2021
2022
2023
2024
$4.21
$4.73
$5.04
$5.31
$5.39
ADJUSTED DILUTED EARNINGS PER SHARE
4
+12.4%
+6.6%
+5.4%
+1.5%
18 Years of Consecutive Earnings Growth
2020
2021
2022
2023
2024
$1.76
$1.92
$2.14
$2.36
$2.56
ANNUALIZED DIVIDENDS PER SHARE
+9.1%
+11.5%
+10.3%
+8.5%
Strong Earnings Growth Drives Strong Dividend Growth
7.7% 5-Year CAGR
9.6% 5-Year CAGR
21 Consecutive Years Increasing Dividend Payments
2024 ANNUAL REPORT |
13
5 Values as of Dec. 31 for the corresponding year.
6 Price-to-Earnings Ratio sourced from FactSet and is based on analyst consensus estimates for the next twelve months earnings.
7 Acquisition of Florida City Gas on November 30, 2023.
FIVE-YEAR COMPOUND ANNUAL
SHAREHOLDER RETURN
6.8%
3.7%
-0.6%
-2.5%
CPK
PEER GROUP
75th PERCENTILE
PEER GROUP
MEDIAN
PEER GROUP
25TH PERCENTILE
CPK
PEER GROUP MEDIAN
PRICE-TO-EARNINGS RATIO
6
CPK Performance Driving Premium Valuation
2019
2020
2021
2022
2023
2024
15.7x
15.6x
19.4x
19.4x
21.8x
28.6x
24.0x
24.0x
18.1x
17.9x
17.8x
22.5x
ADJUSTED EPS AND DIVIDEND PAYOUT
2025
LOW HIGH
2028
LOW HIGH
$8.00
$7.75
$6.35
$6.15
CPK Guidance – 45-50% Dividend Payout
CPK Guidance
$1.5-1.8B
CAPITAL EXPENDITURES
2013-
2017
2018-
2022
2023
2009-
2012
2024
2025
2026
2028
2027
$81M
$1.1B
$210M
$153M
MARKET CAPITALIZATION
5
2024
2018
$1.3B
$2.8B
+108.7%
Continued Growth in the Company
REGULATED
UNREGULATED
ACQUISITIONS
CAPITAL EXPENDITURES
$1.1B
$356M
$141M
$228M
$196M
$199M
Strong Organic Growth Alongside Strategic Acquisitions
2019
2020
2021
2022
2023
2024
TOP
Performance Relative
to Peer Group
8.4-8.7%
10-year EPS CAGR
2018 to 2028
$2.2B
Cap Expenditures
2019–2024
Average Annual CapEx
8%
EPS
CAGR
Guidance
FCG $923M7
| CHESAPEAKE UTILITIES CORPORATION
14
SAFETY
TEAM
SERVICE
IMPROVE
GROW
J Care: We put people first.
J Integrity: We tell the truth.
J Excellence: We achieve great things together.
We deliver energy that makes life better for
the people and communities we serve.
We will be a leader in delivering energy
that contributes to a sustainable future.
M A G A Z I N E
Florida City Gas Named
Easiest to Do Business
With in 2024
by Escalent
Sharp Energy
Recognized as Best Gas
Company in 2024
by Metropolitan
Magazine
Chesapeake Utilities
Named Champion of
Board Diversity in 2024
by The Forum of
Executive Women
ORGANIZATIONAL IMPERATIVES
The Company has identified five organizational
imperatives that are key to operational excellence
and future success. These imperatives guide day-
to-day work as well as medium- and long-term
goal setting and growth strategy.
AWARDS AND ACCOLADES
OUR MISSION
OUR VISION
OUR VALUES
Chesapeake Utilities
Corporation Receives
Torch Award for Ethics
in 2024
by Better
Business Bureau
Chesapeake Utilities
& Sharp Energy
Recognized Among
2024 Stars of Delaware
by Stars of Delaware
Florida City Gas
Named 2024
Residential Utility
Customer Champion
by Escalent
Sharp Energy
Voted Best
Propane Provider
in 2024
by Coastal Style
To demonstrate our internal focus on these
imperatives, the next few pages will review
our 2024 accomplishments within each of the
following five imperatives: safety, team, service,
improve and grow.
Chesapeake Utilities
Named Best for
Corporate Governance
in 2024
by World Finance
Magazine
NORTHERN OPERATIONS
HEADQUARTERS
2024 ANNUAL REPORT |
15
SAFETY
Chesapeake Utilities has been
safely and reliably delivering
energy for more than 160 years.
There is nothing more important than the safety of our
team, our customers and our communities. We’re continually
focused on establishing and maintaining the highest
safety standards across our organization and championing
the well-being of colleagues and those we serve.
To achieve these standards, we have intentionally built a culture of
safety across our organization, ensuring that safe business practices
are ingrained in all policies, procedures, rules and regulations,
supported by continuous monitoring and enhancement efforts.
WHAT GETS MEASURED GETS DONE
In 2024, we launched our new Safety Data Management System
(SDMS), which enables the seamless collection of safety data
throughout our operations, empowering us to efficiently handle,
monitor and report information in a timely fashion. The prompt
dissemination of safety metrics fosters in-depth discussions,
facilitating the formulation of actionable strategies.
Wallet cards and QR code decals were given to all employees,
providing additional ease of access to the SDMS. As part of the roll-
out, all employees, regardless of position, were required to complete
user training in our learning management system. We have also
automated our safety metric dashboards as part of a continuous
improvement effort, making safety analytics more accessible and
enabling data-driven decisions across the organization.
IN FEBRUARY 2024, WE BROKE GROUND FOR OUR SAFETY
TOWN FACILITY IN DEBARY, FLORIDA. The facility is modeled after
Chesapeake Utilities’ Safety Town training facility in Dover, Delaware,
and will serve as a resource for training employees who build,
maintain and operate the Company’s energy infrastructure, as well
as regional first responders. Construction was completed in Q1 2025.
J All workplace incidents can
be prevented.
J All workplace hazardous
exposures can be controlled.
J Company leadership is
responsible for safety
performance.
J All employees and
contractors are committed to
working safely.
J Continuous assessment and
improvement are essential.
J We are committed to a
culture of safety 24/7.
CHESAPEAKE UTILITIES
SAFETY VALUES
KYLE MOORE - DIRECTOR, OHIO OPERATIONS
| CHESAPEAKE UTILITIES CORPORATION
16
TEAM
Uniting as One Company
As we continue to grow, we remain focused on fostering a
culture of belonging and inclusion across the Company. We
believe that attracting, nurturing and retaining talent requires
a unified, cohesive culture that values and rewards the
contributions of each employee. When we work together, as
One Company, we strengthen our ability to deliver affordable,
reliable energy to our customers.
After an incredible first year together, our success integrating
the FCG team into the Chesapeake Utilities family has
strengthened our ability to safely deliver energy to customers
across one of the fastest-growing states in the country.
Since the acquisition, our team has successfully achieved
operational synergies by consolidating processes and
resources. We have accelerated investment opportunities
by moving forward on regulatory approvals to support
service area growth and improve infrastructure — all of this
while retaining 90% of FCG employees one year after the
acquisition. As One Company, our team is positioned to take
Chesapeake Utilities to new heights.
EMPLOYEE RESOURCE
GROUPS EXPAND
TEAMMATE ENGAGEMENT
Our employee resource groups
(ERGs) are more than just
a network of employee-led
organizations; they are vibrant
communities that encourage
inclusivity and belonging
while nurturing innovation,
leadership and growth. ERGs
strengthen our organizational
culture, support business goals
and support overall company
success. In 2024, we added two
new ERGs: HOLA and SHIFT.
When Florida City Gas joined Chesapeake Utilities, the corporate
management team really showed the Company value of caring for us
as new employees. They made us feel at home and welcome coming
on board — like old friends, instead of strangers.”
—RON SANDRIDGE, GAS OPERATIONS SUPERVISOR, FCG
I appreciate the stability of my job and the opportunity to work directly
with our customers. Since Florida City Gas joined Chesapeake Utilities,
that stability has continued, and I’m grateful to grow in a job I love.”
—HOLLY SCHNEIDER, DISTRIBUTION TECH II, FCG
This year, I transitioned to a new role with FCG as a safety coordinator, and
a new challenge was to help design and construct a mobile electric safety
training unit. I’ve learned so much through this project, and I’m excited to help
save lives of first responders through the essential training it will provide.”
—BRIAN WILKERSON, SAFETY COORDINATOR II, FCG
Our ‘best of both’ approach allows us to optimize our operations and
implement efficiencies across Florida. Throughout it all, we welcomed
FCG employees into the Chesapeake Utilities family — and as a result we
retained 90% of FCG employees a year after the acquisition.”
—WILL HAFFECKE, AVP FLORIDA OPERATIONS
SOCIETY HONORING • IGNITION
• FUEL TECHNOLOGY
2024 ANNUAL REPORT |
17
SERVICE
Engaging with Our Communities
Through Service
At the core of our mission is a commitment to serving others—
dedicating our time, talents and resources to the communities
where we live and work. We actively contribute to the growth
and well-being of these communities through charitable
donations, economic development investments and partnerships
with organizations that reflect our values and align with our
focus areas of giving.
SAFETY AND
HEALTH
COMMUNITY
DEVELOPMENT
EDUCATION
ENVIRONMENTAL
STEWARDSHIP
J Fighting Food Insecurity – During 2024, Chesapeake Utilities team members
contributed more than 1,000 hours of service to food banks and organizations
committed to conquering food insecurity. Honoring that commitment, on Dec. 3,
the Company announced a Giving Tuesday donation of $50,000 to food banks,
food pantries and soup kitchens in the communities we serve.
J Scholarship Support – Prioritizing the value of educational opportunities for our team
members and the communities we serve, the Company awarded more than $30,000
in academic scholarships in 2024. The Aspiring Scholars scholarship is awarded
annually to children of Chesapeake Utilities Corporation employees, while both the
Black History Month and the Women in Energy STEM scholarships are sponsored by
our employee resource groups, the Black Employee Network and Women in Energy.
J Nature Conservancy – Supporting the conservation and protection of our
natural resources improves the lives of our neighbors and adds to the strength
and stability of our communities. We continue our long-standing relationships
with The Nature Conservancy (TNC), both through employee volunteerism and
corporate donations. In 2024, we contributed $50,000 to two TNC chapters in
our service territories.
CHESAPEAKE UTILITIES’
FOCUS AREAS OF GIVING
In 2024, Chesapeake Utilities contributed nearly $575,000 in
donations and sponsorships that supported more than 75
nonprofit and community organizations. Collectively, our team
members Companywide completed more than 6,800 volunteer
hours, benefiting organizations across our service territories.
Some highlights of our service and philanthropy in 2024 included:
J Hurricane Relief Support – The Company gave $50,000 in donations to support
affected communities in our service areas during the aftermath of Hurricanes
Helene and Milton, including $30,000 to American Red Cross, $10,000 to
Volunteer Florida – The Florida Disaster Fund and $10,000 to Samaritan’s Purse –
Hurricane Relief Fund.
| CHESAPEAKE UTILITIES CORPORATION
18
IMPROVE
Leading Customer Service and
Business Transformation Through 1CX
Central to Chesapeake Utilities’ business transformation is an ongoing commitment to evaluating
operations and implementing improvements that ensure sustained success and adaptability. With
goals of providing exceptional customer service and enhanced operational efficiencies, Chesapeake
Utilities implemented phase one of 1CX in August 2024. The Company’s most ambitious technology-
driven business transformation project to date, the new customer information system on the SAP
platform is designed to improve service for our over 360,000 regulated utility customers.
CONTINUOUS INFRASTRUCTURE IMPROVEMENT
Our two Florida natural gas distribution subsidiaries, Florida Public Utilities (FPU) and Florida City Gas (FCG),
are actively implementing infrastructure improvement programs to enhance safety, reliability and accessibility.
J FPU’s Gas Utility Access and Replacement Directive (GUARD) Program: Launched in 2023, this 10-year
initiative relocates mains and service lines from rear easements to street fronts, replaces problematic
pipes and enhances system reliability.
J FCG’s Safety, Access and Facility Enhancement (SAFE) Program: Extended in 2023 through 2035,
SAFE focuses on relocating rear lot mains, addressing obsolete pipes and reducing damage risks. In
2024, the program was aligned with GUARD to accelerate pipe remediation.
Both programs, backed by independent risk assessments, represent a $460 million investment over
the next decade to enhance safety, reliability and environmental performance by replacing leak-prone
pipes. The 10-year timelines are expected to yield cost savings on construction, materials and labor while
reducing long-term operations and maintenance expenses.
REDUCING THE IMPACT OF SEVERE WEATHER
Storm hardening efforts continue for our electric distribution operations. FPU’s Storm Protection Plan
(SPP) is designed to meet the objectives of Florida‘s legislative mandate to reduce restoration costs
and outage times associated with extreme weather events while also enhancing reliability. The SPP is a
combination of programs and initiatives grounded on a methodology of resiliency risk scores across
FPU’s distribution system.
CUSTOMER DATA
MANAGEMENT
SERVICE ORDERS
& WORKFLOW
MANAGEMENT
BILLING &
INVOICING
METER DATA
MANAGEMENT
Through collaboration with
SAP and IBM, the large-scale
technology transformation
replaced and consolidated
two legacy billing systems
for our Florida Public Utilities
and Chesapeake Utilities
subsidiaries with a state-of-
the-art customer solution.
The new customer information system has enhanced service
delivery, streamlined processes and improved efficiency across
key operational areas: customer data management, billing and
invoicing, meter data management and service orders and
workflow management.
Phase two of the 1CX project is scheduled to be completed by
Q2 2025 and will incorporate Florida City Gas (FCG) and its
systems into the consolidated platform.
SAP AWARD
Chesapeake Utilities was
recognized by SAP as the
Mid-Size Utility of the Year
at the SAP4U Conference on
Sept. 10, 2024, showcasing
the Company’s achievements
in harnessing the power of
SAP technology to better
serve customers.
2024 ANNUAL REPORT |
19
GROW
Capital Investment Drives Long-Term Business Growth
Chesapeake Utilities invested $356 million of capital throughout 2024, with approximately 90%
of that spent on regulated transmission and distribution systems, and upgraded technology.
RESIDENTIAL
CUSTOMER
GROWTH
FY 2024 VS FY 2023
DELMARVA
FLORIDA
4.0%
3.9%
WORCESTER RESILIENCE UPGRADE (WRU)
In 2024, Chesapeake Utilities began work on an $80 million liquefied natural gas storage facility in Bishopville,
Maryland. Consisting of five low-profile horizontal storage tanks allowing for 500,000 gallons of storage, the
project will supply critical energy service to customers during winter heating season demand peaks.
In January 2025, the Company received FERC approval of the project, enabling construction to begin in Q1
2025 and the project to be in-service by Q3 2025, ahead of winter heating demand.
This project is an important asset for extending and strengthening service in the southern-most part of our
Delmarva Peninsula service area.
The foundation that underlies our core business strategy is
operational excellence in our high-growth service areas. We are
the beneficiaries of our geography, which is a privilege that we
take very seriously as our customers rely on us to operate safely,
fuel their homes and power their businesses every single day.
Throughout 2024, we continue to see rapid growth across our
regulated businesses.
We continued to see population growth in Delaware and Maryland
as new communities are developed to serve demand from retirees
and families looking for additional space while remaining close to
the metro areas of Philadelphia, Baltimore and Washington, D.C.
In Florida, the story is largely the same, as Florida continues to
lead the nation in population growth. Above-average customer
growth and demand for natural gas enabled us to expand
distribution service in our existing areas and invest in our newly
acquired FCG service areas.
THE CHESAPEAKE UTILITIES TEAM INSPECTS
THE MANUFACTURING OF A LIQUIFIED NATURAL
GAS TANK TO BE INSTALLED AS PART OF OUR
WORCHESTER RESILIENCY UPGRADE PROJECT.
FPU Service Territories
NEWBERRY EXPANSION
BOYNTON BEACH
WILDLIGHT PHASE 1 & 2
FCG Service Territories
Pipeline Expansions
RNG Projects
INDIAN RIVER RNG
BREVARD RNG
MEDLEY RNG
MIAMI INNER LOOP
NEW SMYRNA BEACH
ST. CLOUD EXPANSION
LAKE MATTIE
PLANT CITY
FPU Service Territories
FCG Service Territories
Pipeline Expansions
RNG Projects
| CHESAPEAKE UTILITIES CORPORATION
20
SUSTAINABILITY
Chesapeake Utilities is committed to leveraging
its expertise across the entire energy delivery value
chain to continue building a more sustainable future.
We believe that communities, consumers and businesses are best positioned to thrive when they have
access to reliable, resilient and affordable sources of energy. The Company has a long track record of
innovative approaches to renewable natural gas and hydrogen and remains committed to delivering
energy that makes life better for the people and communities we serve, while remaining a leader in
building a sustainable future.
DELIVERING FLORIDA-PRODUCED RENEWABLE
NATURAL GAS (RNG) TO FLORIDIANS
Leveraging our unique energy delivery expertise—from production
to virtual pipeline transportation, injection, transmission and
distribution—Chesapeake Utilities achieved a company first in
2024: delivering Florida-produced RNG to Floridians.
In late 2024, the Company commissioned Full Circle Dairy, a full-
scale dairy manure-to-pipeline-quality RNG facility. The project
is expected to produce an average of 100,000 Dth annually,
capturing and redirecting more than 1,100 metric tons of methane
per year into a renewable energy source—an emission reduction
equivalent to powering 3,500 homes for a year. Through our
subsidiary, Marlin Gas Services, RNG is transported via a virtual
pipeline to an injection point in Yulee, Florida, to be delivered to
customers in Nassau County.
THE FIRST INJECTIONS OF RNG FROM THE
COMPANY’S RNG FACILITY AT FULL CIRCLE
DAIRY WERE RECEIVED AT A NEW INJECTION
POINT IN YULEE, FLORIDA, IN JUNE 2024.
MICRO-SUSTAINABILITY REPORT ON
ENVIRONMENTAL STEWARDSHIP ISSUED
IN SEPTEMBER 2024.
DELAWARE ENERGY EFFICIENCY PROGRAMS
In April 2024, the Delaware PSC approved the establishment
of a portfolio of natural gas energy efficiency programs, the
first of its kind to be offered in the state. Chesapeake Utilities
is partnering with the Delaware Sustainable Energy Utility
to deliver these programs, which facilitate home energy
assessments and identify energy-efficiency opportunities to
drive cost savings, particularly for lower-income customers.
PLANET FOUND ENERGY DEVELOPMENT (PFED)
PFED, acquired in October 2022, develops energy technologies
to generate biogas from poultry litter. In Q3 2024, the Company
enhanced its facility to convert biogas into pipeline-quality RNG,
which will be transported by Marlin Gas Services to the Eastern
Shore Natural Gas Bridgeville, Delaware, interconnect location. As
the first U.S. producer of RNG from poultry litter, PFED is working
to qualify for Transportation Fuel Renewable Identification Number
(RIN) credits used to track and promote the production and use of
renewable fuels under the U.S. Renewable Fuel Standard program.
2024 ANNUAL REPORT |
21
JEFF HOUSEHOLDER
Chair of the Board, President
and Chief Executive Officer,
Investment Committee Chair
DENNIS S. HUDSON, III
Corporate Governance
Committee Chair,
Audit Committee Member
LISA G. BISACCIA
Compensation Committee
Chair, Corporate Governance
Committee Member
STEPHANIE N. GARY
Audit Committee Member
THOMAS J. BRESNAN
Independent Lead Director of the
Board, Audit Committee Chair,
Investment Committee Member
RONALD G. FORSYTHE, JR.
Audit Committee Member,
Compensation Committee
Member
PAUL L. MADDOCK, JR.*
Compensation Committee
Member, Corporate Governance
Committee Member
SHEREE M. PETRONE
Compensation Committee
Member, Investment
Committee Member
BOARD OF DIRECTORS
Chesapeake Utilities Corporation’s Board of Directors provides guidance
and insight for the entire Company, leveraging their diverse experiences and
leadership expertise to strengthen our business and long-term strategic focus.
*Paul L. Maddock, Jr.
has significantly
contributed to the
Company’s growth
and success. He
is retiring in May
2025, following the
Annual Meeting of
Stockholders.
PAUL L.
MADDOCK, JR.
J More than
15 years of service
J Member,
Corporate
Governance
Committee,
2009-2013 and
2017-2025
J Member,
Audit Committee,
2013-2016
J Member,
Compensation
Committee,
2022-2025
J Prior to joining the
Company’s Board
of Directors, Mr.
Maddock served on
the Florida Public
Utilities Company’s
Board of Directors for
more than 11 years.
LILA A. JABER
Corporate Governance
Committee Member,
Investment Committee Member
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended: December 31, 2024
□
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 001-11590
CHESAPEAKE UTILITIES CORPORATION
(Exact name of registrant as specified in its charter)
State of Delaware
51-0064146
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
500 Energy Lane, Dover, Delaware 19901
(Address of principal executive offices, including zip code)
302-734-6799
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Common Stock—par value per share $0.4867
CPK
New York Stock Exchange, Inc.
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒No □
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes □No ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes ☒No □
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405
of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit
such files). Yes ☒No □
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company,
or an emerging growth company. See the definitions of ‘‘large accelerated filer,’’ ‘‘accelerated filer,’’ ‘‘smaller reporting company,’’ and ″emerging
growth company″ in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
□
Non-accelerated filer
□
Smaller reporting company
□
Emerging growth company
□
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal
control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that
prepared or issued its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in
the filing reflect the correction of an error to previously issued financial statements. □
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive based compensation
received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). □
Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes □No ☒
The aggregate market value of the common shares held by non-affiliates of Chesapeake Utilities Corporation as of June 30, 2024, the last business
day of its most recently completed second fiscal quarter, based on the last sale price on that date, as reported by the New York Stock Exchange, was
approximately $2.3 billion.
The number of shares of Chesapeake Utilities Corporation’s common stock outstanding as of February 24, 2025 was 22,982,417.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Chesapeake Utilities Corporation Proxy Statement for the 2025 Annual Meeting of Stockholders are incorporated by reference in Part
II and Part III hereof.
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