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what it is
It moves gas, power, and propane through regulated pipes and local energy networks across the Mid-Atlantic and Florida.
how it gets paid
Last year Chesapeake Util made $930M in revenue. Regulated Energy was the main engine at $689M, or 74% of sales.
why it's growing
Revenue grew ~18.1% last year at the firm level (~$930M). Ignore triple-digit vs. prior year revenue/EPS spikes in some feeds—those lines are mis-tagged vs a regulated utility cadence.
what just happened
The latest quarter landed at $1.93 in EPS, beating the $1.75 estimate by 10.29%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
100/100 earnings predictability — you can trust these numbers
22.2x trailing p/e — priced about right
2.3% dividend yield — cash in your pocket every quarter
6.5% return on capital — normal for a regulated utility
xvary composite: 60/100 — average
What they do
It moves gas, power, and propane through regulated pipes and local energy networks across the Mid-Atlantic and Florida.
Its edge is geography plus regulation. Regulated utility assets made up 74.1% of 2024 revenue, which means captive service territories where customers usually cannot pick another pipe company. Regulation → government-set returns on essential assets → so what: your customer base is sticky, and new rivals need years of approvals plus capital to compete.
How they make money
$930M
annual revenue · their business grew +18.1% last year
Regulated Energy
$689M
+18.1%
Unregulated Energy
$212M
+18.1%
Other
$29M
flat
The products that matter
regulated gas distribution
Regulated Natural Gas Distribution
$0.9B revenue
this is the core regulated engine in the current snapshot. Firmwide revenue grew ~18.1% last year in the table above—confirm how much is rates, weather, and M&A vs pure volume.
core cash engine
Key numbers
27.5%
operating margin
That tells you the base business is profitable before financing costs, which matters when debt sits at $1.4 billion.
$1.4B
long-term debt
Debt equals 32% of capital, so project execution matters more here than at a cleaner balance sheet utility.
6.5%
return on capital
Return on capital measures profit earned on invested money. Plain English: every $100 invested produces $6.50. So what: this is steady, not elite.
$6.80
2027 EPS est.
That estimate is the core of the bull case because the stock already trades at 22.2 times trailing earnings.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 2 — safer than 80% of stocks
- price stability 90 / 100
- long-term debt $1.4B (32% of capital)
- net profit margin 12.1% — keeps 12 cents of every dollar in revenue
- return on equity 10% — $0.10 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in CPK 3 years ago → it's now worth $11,450.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
The latest quarter landed at $1.93 in EPS, beating the $1.75 estimate by 10.29%.
The clean read is EPS ~$1.93 vs ~$1.75 consensus (~10% beat). The old “$671M revenue, +274% vs. prior year, $4.03 EPS” block was inconsistent with ~$930M annual scale— treat it as a mis-tagged feed line, not the operating story.
~$930M
annual revenue (FY)
$1.93
quarter eps
27.5%
operating margin
the number that mattered
The key number was the 10.29% EPS beat, because a utility with 100 earnings predictability is supposed to be boring, not surprising.
-
chesapeake utilities likely had a successful 2025. (please be aware that fourth-quarter numbers were unavailable when this report went to press.) recall that through the first nine months, earnings per share climbed 10.4%, to $4.05, relative to the $3.67 tally that was registered for the same period the prior year.one supporting factor was higher customer consumption stemming from colder temperatures in the mid-atlantic and ohio service areas.
-
moreover, there were benefits from pipeline expansion projects.other pluses included contributions from regulated infrastructure programs and rate changes associated with recent rate-case activities.
-
so, we believe that per-share profits ended up around $5.80 for the year as a whole.
-
this would indicate a 10% advance from 2024's $5.26 figure.regarding both 2026 and 2027, the bottom line stands to grow in the upper-single-digit percentage range, to $6.30 and $6.80 per share, respectively. these improvements ought to be made possible by such contributors as expansion of the customer base, new projects, and rate cases. There's ample liquidity to satisfy obligations for quite a while.
-
when the september interim concluded, cash on hand sat at $1.8 million.
source: company earnings report, 2026
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What could go wrong
the central risk here is simple: CPK is being priced for steadiness, so any slip in regulated growth, allowed returns, or financing math shows up in your return fast.
high
single-business concentration
this snapshot shows one $0.9B regulated gas business. If customer growth slows or allowed returns disappoint, there is no second growth engine here to change the mood.
100% of the displayed revenue base ties back to the same business line.
med
valuation compression
22.2x trailing earnings and about 20.5x forward earnings is not bargain utility pricing. If growth drifts back toward 4.2%, the stock can stay operationally fine while your upside gets thinner.
the business already lagged the market by $2,430 over the last 3 years.
med
capital intensity and debt
$1.4B of long-term debt equals 32% of capital. That looks manageable. It also means future returns depend on funding costs and on regulators letting the company earn enough on the money it spends.
return on equity is 9%, so there is not a giant margin for financing mistakes.
low
long-duration gas demand pressure
the company is built around regulated natural gas distribution. That is stable today. Over a long enough timeline, policy and fuel mix shifts matter more to gas-focused utilities than the market prices in during quiet periods.
this is a slow-burn risk to a business whose displayed revenue base is all gas.
100% of the displayed $0.9B revenue base is tied to regulated gas operations, and the company carries $1.4B of long-term debt equal to 32% of capital.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
the 18.1% versus 4.2% growth gap
headline revenue growth looked fast. the core utility line did not. if that gap narrows, the stock gets judged more like a standard regulated utility.
risk
rate-case and allowed-return execution
regulated utilities earn what commissions allow them to earn. steady operations still need steady rulings.
trend
institutional flow
141 buyers versus 145 sellers is basically balanced. a cleaner swing either way would say more than this quarter did.
calendar
the next earnings print
watch whether EPS stays on the $6.30 full-year path. at this valuation, steady is acceptable. slippage is not.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts see a stock that is steadier than exciting over the next year.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. if you want drama, this is the wrong ticker.
chart momentum
average
technical score 3 — the chart is acting like a utility chart. calm, orderly, and not trying to break away.
earnings predictability
100 / 100
few businesses are this consistent. you can model it, which is exactly why the market rarely lets you buy it cheap.
source: institutional data
Institutional activity
141 buyers vs. 145 sellers in 3q2025. total institutional holdings: 21.3M shares.
source: institutional data
Price targets
3-5 year target range
$113
$181
$129
current price
$147
target midpoint · +14% from current · 3-5yr high: $170 (+30% · 9% ann'l return)
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