Chesapeake Utilities crossed the $1 billion asset mark as the company reported higher earnings in the third quarter of 2015.
The fast-growing company based in Dover reported net income for the three months ended September 30, was $5.1 million, or $0.33 per share. This represents an increase of $1.9 million over the same quarter in 2014. For the nine months ended September 30, the company reported net income of $32.5 million or $2.16 per share. This represents an increase of $6.5 million compared to the same period in 2014.
Revenues are nearing the $500 million a year mark.
“Our higher results for the third quarter and year-to-date are the current harvest of our continued growth in productive assets, which now exceed $1 billion, and the concerted efforts of our employees to reap sustained earnings growth from those assets,” stated Michael P. McMasters, CEO Chesapeake Utilities Corporation. “We are currently working on several large growth projects, including the combined heat and power plant in Florida and new natural gas transmission services on the Delmarva Peninsula, while continuing to identify and develop additional growth opportunities within and beyond our current markets to provide future earnings and dividend growth.”
The company was aided by lower propane prices and a revised pricing strategy in that segment of its businesses. It also revenue from a recently acquired operation that gathers and distributes natural gas from wells in a portion of Ohio. New supplies of natural gas are also triggering expansion on the Delmarva Peninsula.
The company’s Eastern Shore Natural Gas Company, a pipeline subsidiary, executed contracts with an industrial customer in New Castle County that will add to earnings.
Eastern Shore also came up with an agreement with industrial customers in Kent County that are expected to add millions of dollars a year in revenues. Customers were not identified. However, Dover is the site of a new natural gas-fired power plant.
A project is also planned to help ensure reliable gas supplies in this region during periods of extremely cold weather.
The Company has revised its capital expenditures forecast for 2015 to be in the range of $130 million to $160 million.
