Investor Presentation

CHESAPEAKE

UTILITIES CORPORATION

Siebert Williams Shank

West Coast Utilities Conference

March 20-21, 2024

Today's Presenters

Beth Cooper

Executive Vice President, Chief Financial Officer, Treasurer,

and Assistant Corporate Secretary

Noah Russell

Assistant Vice President and Assistant Treasurer

Safe Harbor for Forward-Looking Statements

Safe Harbor Statement

Some of the statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable law. Such forward--looking statements may be identified by the use of words, such as "project," "believe," "expect," "anticipate," "intend," "plan," "estimate," "continue," "potential," "forecast" or other similar words, or future or conditional verbs such as "may," "will," "should," "would" or "could." These statements represent our intentions, plans, expectations, assumptions and beliefs about our future financial performance, business strategy, projected plans and objectives. These statements are subject to many risks and uncertainties and actual results may materially differ from those expressed in these forward-looking statements. Please refer to Chesapeake Utilities Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC and other SEC filings concerning factors that could cause those results to be different than contemplated in this presentation.

Non-GAAP Financial Information

This presentation includes non-GAAP financial measures including Adjusted Gross Margin, Adjusted Net Income and Adjusted Earnings Per Share ("EPS*"). A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future performance that includes or excludes amounts, or that is subject to adjustments, so as to be different from the most directly comparable measure calculated or presented in accordance with GAAP. Our management believes certain non-GAAP financial measures, when considered together with GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period.

The Company calculates Adjusted Gross Margin by deducting the purchased cost of natural gas, propane and electricity and the cost of labor spent on direct revenue-producing activities from operating revenues. The costs included in Adjusted Gross Margin exclude depreciation and amortization and certain costs presented in operations and maintenance expenses in accordance with regulatory requirements. The Company calculates Adjusted Net Income and Adjusted EPS by deducting costs and expenses associated with significant acquisitions that may affect the comparison of period-over-period results. These non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measures. The Company believes that these non-GAAP measures are useful and meaningful to investors as a basis for making investment decisions and provide investors with information that demonstrates the profitability achieved by the Company under allowed rates for regulated energy operations and under the Company's competitive pricing structures for unregulated energy operations. The Company's management uses these non-GAAP financial measures in assessing a business unit and Company performance. Other companies may calculate these non-GAAP financial measures in a different manner.

See Appendix for a reconciliation of Gross Margin, Net Income and EPS, all as defined under GAAP, to our non-GAAP measures of Adjusted Gross Margin, Adjusted Net Income, and Adjusted EPS for each of the periods presented.

*Unless otherwise noted, EPS and Adjusted EPS information is presented on a diluted basis.

Growing, Diversified Portfolio of Energy Delivery Solutions

Chesapeake Utilities Corporation Overview

NYSE: CPK

$2.3B Market Cap company 160+ years providing energy 1,281 employees at Dec. 31, 2023

~440,000 distribution customers

Our Business Lines

States We Serve

Regulated Energy Segment

Natural Gas Transmission

DE, FL, MD, PA, OH

Natural Gas Distribution

DE, MD, FL

Electric Distribution

FL

Unregulated Energy Segment

Propane Distribution

PA, DE, MD, VA, NC, SC, FL

Natural Gas Pipeline System

OH

CNG Services

Multiple - Including New CNG Fueling

Station in GA

CHP Generation

FL

RNG Opportunities

Multiple - Including projects and acquisitions in OH, MD, FL

Chesapeake Utilities' Model for Financial Success

2023 Takeaways and Looking Forward

while executing

driven by

2023 Key Financial Takeaways

  • → 17th - Consecutive year of earnings growth*

  • → 5.4% - Growth in Diluted Adjusted EPS* over 2022

    and confidently

  • → 7 - Growth in Adjusted Net income* since 2009 (7x) and the period over which we doubled Adjusted Net income* (7 years)

  • → 63rd - Consecutive year paying quarterly dividends

  • → 20th - Consecutive year increasing annualized dividend per share

*Based upon adjusted earnings, excluding FCG transaction expenses

Year-End 2023 Financial Summary

Solid performance, despite significantly warmer weather and continued inflationary environment

(in thousands except per share data)

Consolidated

Total Adjusted Gross Margin1

Operating Income

Other Income (Expense), Net Interest Charges

Pre-tax Income Income Taxes Net Income Diluted EPS

Net Income (GAAP) Transaction-related expenses, net 2 Adjusted Net Income (Non-GAAP)1

Adjusted Earnings Per Share - Diluted (Non-GAAP)1

1See appendix for GAAP to non-GAAP reconciliations.

Excluding transaction- related expenses, operating income increased $18.2 million, or 12.8%

2Transaction-related expenses represent costs incurred attributable to the announced acquisition of FCG including, but not limited to, legal, consulting, audit and financing fees.

2023 Financial Performance driven by Increased Gross Margin

Key Adjusted Gross Margin Drivers

Adjusted Diluted Earnings Per

$5.04

Q4 2022 Q4 2023

2022

2023

-$13.6M Lower Customer Consumption Related to WarmerWeather

1/ Diluted Earnings Per Share Growth from Continuing Operations; 2023 excludes transaction-related costs associated with the FCG acquisition

Capital Investment Continues to Drive Our Earnings Growth

Long track record of prudent capital investments and strategic acquisitions

$283

Capital Investments

Amounts in chart reflected in millions.

AcquisitionsHurricane Michael

Significant Investment in Our Legacy Businesses

In 2023, we invested $211 million in our legacy businesses, with 80% of that in our regulated operations

2023 Capital Investment in

NG DistributionNG TransmissionElec. DistributionUnregulated

Growth

InfrastructureTechnologyOther

Customer growth in our service jurisdictions remains strong and will continue to drive significant capital investment through the 2028 guidance period

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Disclaimer

Chesapeake Utilities Corporation published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2024 18:22:07 UTC.