Updated 4/21/25
Chesapeake Utilities Corporation (CPK) operates a regulated energy business across the Mid-Atlantic, Southeast, and Midwest, focusing on natural gas, electric distribution, and related services. Over the past year, the stock has climbed more than 28%, supported by strong earnings growth, disciplined capital investments, and a stable management team. In 2024, Chesapeake reported net income of $118.6 million, driven by infrastructure expansion and its acquisition of Florida City Gas. With a five-year capital plan of up to $1.8 billion and a forward earnings outlook of $6.15 to $6.35 per share for 2025, the company continues to build on a foundation of operational strength, efficiency, and long-term strategy.
Recent Events
The last 12 months have been quietly strong for Chesapeake. The stock is up over 28% in the past year, which is no small feat, especially when compared to the broader market’s more modest gains. This performance wasn’t driven by hype, but rather solid execution and a dependable business model that tends to thrive when investors lean into stability.
Looking at the financials, revenue grew by 16% year over year, while earnings jumped nearly 45%. Those are impressive numbers for any company, let alone a utility, which typically sees much slower movement. That kind of earnings power is what helps sustain and grow dividends.
Profit margins are strong, with Chesapeake posting an operating margin north of 31% and a profit margin around 15%. These numbers speak to a well-run operation that knows how to manage costs and keep its service base profitable. The return on equity comes in at 9%, which reflects solid performance in a capital-intensive industry.
One potential flag is Chesapeake’s current ratio, sitting at just 0.49. That means short-term liabilities outweigh current assets, hinting at some liquidity pressure. Pair that with a total debt load of $1.49 billion and a debt-to-equity ratio over 100%, and it’s clear the company has leaned into borrowing—typical for utilities, but worth monitoring as interest rates remain elevated.
Key Dividend Metrics 🧾
📅 Forward Dividend Yield: 1.89%
💵 Forward Annual Dividend: $2.56 per share
📈 5-Year Average Yield: 1.80%
📊 Payout Ratio: 47.72%
🔁 Dividend Growth Rate (5-Year Avg): Mid-single digits
📆 Next Dividend Date: April 7, 2025
❌ Ex-Dividend Date: March 14, 2025
⚖️ Last Split: 3-for-2 in September 2014
Dividend Overview
Chesapeake isn’t trying to dazzle anyone with an ultra-high yield. Instead, it’s offering consistency. With a forward yield of 1.89%, it edges just slightly above its five-year average, which sits at 1.80%. That kind of consistency is what makes it a dependable option for those who value reliability over drama.
The company’s payout ratio is comfortably below 50%, which is a strong sign. It means Chesapeake isn’t stretching to cover its dividend with earnings, even as it continues to invest in growth. This kind of balanced approach keeps income investors happy without sacrificing future flexibility.
Earnings per share for the trailing twelve months stand at $5.26, which more than covers the dividend and leaves room for future increases. Chesapeake’s management has a track record of modest, regular dividend hikes—just enough to stay ahead of inflation and show commitment to shareholders without overextending.
Dividend Growth and Safety
Dividend safety is where CPK really earns its keep. Here’s what stands out:
- Earnings momentum: With earnings rising sharply over the past year, Chesapeake has a lot of room to maintain or even increase its payout. While 45% growth likely won’t continue at that pace, even a slower trend keeps the dividend well supported.
- Healthy payout ratio: At 47.7%, the company is in a sweet spot. There’s room to grow the dividend without needing massive earnings jumps. It’s a measured approach, and that tends to hold up well over market cycles.
- Cash flow stability: Chesapeake brought in $239 million in operating cash flow over the last year. While levered free cash flow is negative due to capital spending, that’s expected in a utility with long-term infrastructure investments. As long as operations remain strong, the dividend isn’t under pressure.
- Low beta stock: CPK has a beta of 0.67, meaning it’s less volatile than the broader market. For income investors, that lower risk profile adds another layer of comfort.
- Steady dividend growth history: The company’s commitment to regular increases speaks volumes. It’s not about big jumps, but about consistency. And when you’re building a portfolio for income, that reliability matters more than chasing the next big payout.
Chesapeake Utilities doesn’t shout for attention, but it delivers where it counts—on consistency, operational strength, and a well-managed dividend. For investors focused on building a dependable stream of income, CPK offers a strong case through its steady results and shareholder-friendly approach.
Cash Flow Statement
Chesapeake Utilities’ cash flow statement shows a company in the middle of a heavy investment cycle. Over the trailing twelve months, it generated $239.4 million in operating cash flow, a noticeable increase from the prior years, reflecting stronger core earnings and improved operational efficiency. This is a healthy sign, especially for a utility, where consistent cash generation is essential to support dividends and ongoing infrastructure projects.
However, the company’s free cash flow came in negative at -$115.9 million, largely due to capital expenditures totaling $355.3 million. This is more than double its 2022 spending, highlighting its commitment to growth and system upgrades. Financing cash flow helped plug the gap, with $113.5 million flowing in, mainly from new debt issuance. Despite this spending, the company ended the period with $7.9 million in cash—an increase from the prior year. While short-term free cash flow is in the red, this appears to be a deliberate investment phase rather than a sign of distress.
Analyst Ratings
📈 Chesapeake Utilities (CPK) recently received an upgrade to “Strong Buy” from Ladenburg Thalmann, reflecting growing optimism around the company’s strategic direction. This came shortly after the company’s Investor Day, where leadership shared a more ambitious outlook. With plans to increase capital expenditures and a forecasted earnings growth of 14% to 18% over the next twelve months, analysts are beginning to see stronger momentum building beneath the surface.
🔍 Even with that upgrade, broader analyst sentiment is still somewhat cautious. Among the four analysts covering the stock, three rate it as a “Hold” and one has issued a “Strong Buy.” The average 12-month price target sits at $122.67, which is below the stock’s recent trading price around $135.50. This suggests that, while some analysts are encouraged by Chesapeake’s direction, others are watching valuation levels more closely.
🎯 The range of price targets goes from $115.00 on the low end to $129.00 on the high end, showing a fair amount of disparity in expectations. Some analysts may be taking a wait-and-see approach, focusing on how Chesapeake executes its expansion plans and manages its rising debt levels amid ongoing infrastructure investments.
Earning Report Summary
Strong Finish to the Year
Chesapeake Utilities closed out 2024 on a high note, with solid earnings and a clear sense of forward momentum. The company posted net income of $118.6 million, or $5.26 per share, showing healthy growth over the prior year. Stripping out the acquisition-related costs tied to the Florida City Gas deal, adjusted earnings landed at $121.5 million, or $5.39 per share. That adjustment helps tell the story more clearly—core operations are firing on all cylinders.
A big part of the lift came from that Florida City Gas acquisition, which seems to be integrating well. But that wasn’t the only driver. Growth also came from steady regulatory wins, investments in infrastructure, and increased demand across their virtual pipeline services. Chesapeake’s been busy building, and the results are starting to reflect that.
A Big Fourth Quarter Push
The fourth quarter was especially strong. Net income hit $36.7 million, or $1.60 per share, up from $25.3 million and $1.26 per share a year earlier. Adjusted earnings came in just a bit higher at $37.3 million, or $1.63 per share. Management clearly wanted to end the year with momentum, and they did just that.
One standout detail: Chesapeake invested a record $356 million into capital projects in 2024. That money went into improving infrastructure and expanding their utility footprint—moves that should support long-term growth without adding unnecessary risk.
Looking Ahead
The tone from leadership heading into 2025 is optimistic but grounded. The company is guiding for earnings between $6.15 and $6.35 per share, which would represent another meaningful step up. That kind of forecast isn’t just about riding current tailwinds—it’s rooted in a serious capital plan.
Chesapeake has laid out a five-year roadmap that includes $1.5 to $1.8 billion in investments. This isn’t about splashy acquisitions or speculative plays. It’s a focused approach centered around infrastructure, customer demand, and expanding services where they already operate. The leadership team sees plenty of room to grow by doing what they know best.
All in all, Chesapeake’s recent earnings paint a picture of a company that’s not just coasting on past wins. They’re clearly building for the future, with solid financial footing and a clear strategy. For investors watching from the sidelines—or those already in—it’s a sign that this utility still has a lot of potential left in the tank.
Chart Analysis
Price Trend and Moving Averages
The chart for CPK over the past year shows a steady and well-structured uptrend. Starting from just above $100, the price has marched upward in a series of higher highs and higher lows, recently reaching above $135. This steady climb is supported by both the 50-day and 200-day moving averages. The 50-day moving average (in red) stayed comfortably above the 200-day (in blue) for the entire period, which is a classic sign of trend strength and underlying support.
Even during brief pullbacks, the price found support either at or slightly above the 50-day line, showing that short-term dips were consistently met with buying interest. That’s often an encouraging sign of investor confidence. The 200-day moving average, meanwhile, has steadily climbed without much interruption, reinforcing the longer-term upward trajectory.
Volume Action
Volume has stayed relatively muted throughout most of the year, with a few notable spikes. These volume bursts often coincided with sharp upward movements in the stock price, suggesting accumulation rather than panic selling. There’s no evidence of sustained heavy selling pressure, which helps confirm that the trend higher has been driven by steady interest rather than short-term hype.
RSI Momentum
The relative strength index (RSI) shows multiple instances of the stock flirting with overbought territory, especially during the most recent rally in April. While it hasn’t spent too much time above the 70 mark, it has consistently stayed in the upper half of the range, which suggests strong underlying momentum. Periods when RSI dipped below 50 were short-lived, and each time it recovered quickly—another sign of persistent buying interest rather than extended fatigue.
Taken together, the trend in CPK is structurally sound, with healthy technical support from both moving averages and consistent momentum as seen in RSI behavior. While prices have come up significantly, the chart doesn’t show signs of exhaustion or reversal just yet.
Management Team
Chesapeake Utilities is run by a leadership team that knows how to stay focused and execute. At the top is Jeffry M. Householder, who has been serving as President and CEO since 2019 and was named Chairman in 2023. His steady hand has guided the company through major transitions and growth periods, particularly around infrastructure investments and the Florida City Gas acquisition. Working alongside him is Beth W. Cooper, the longtime CFO who has been with Chesapeake for more than 16 years. Her experience in managing the company’s financials and capital planning has been central to its continued stability.
The broader executive group includes leaders with deep operational and legal experience. Jeffrey S. Sylvester, the Chief Operating Officer, and James F. Moriarty, the Executive Vice President and General Counsel, round out a group that’s remained consistent in strategy and tone. This stability in leadership has helped reinforce the company’s conservative approach to growth while staying responsive to market opportunities. Chesapeake’s leadership team isn’t chasing flash—they’re delivering consistent execution year after year.
Valuation and Stock Performance
Chesapeake Utilities has delivered solid returns over the past 12 months, with the stock climbing more than 28 percent. As of late April 2025, shares are trading around $135.50. That’s a reflection of investor confidence and a positive response to both earnings growth and recent acquisitions. Compared to the broader utility sector, CPK has outperformed with a quiet strength that speaks more to operational results than market buzz.
Looking at valuation, Chesapeake’s trailing P/E ratio stands at 25.76, while the forward P/E is 21.60. That forward-looking number suggests that analysts expect continued earnings growth in the near term. With an enterprise value to EBITDA ratio of about 13.5 times, Chesapeake isn’t cheap—but it isn’t overly stretched either, especially given the regulated and stable nature of its core business. The market appears to be pricing in the company’s strong earnings outlook and its disciplined investment plans, which are set to continue over the next several years.
Risks and Considerations
While Chesapeake has built a reputation for consistency, there are a few key risks that investors should keep in mind. The company’s debt-to-equity ratio is just over 1.07, which indicates a moderate reliance on borrowing. That’s not unusual for a utility, especially one investing in infrastructure, but in a high-rate environment, debt servicing costs can start to eat into margins if not managed carefully.
Another consideration is regulatory exposure. As a utility, Chesapeake’s ability to adjust pricing is subject to approval, and any delays or changes in state or federal policies could impact revenue projections. There are also operational risks to consider. Like any utility, infrastructure issues, weather-related disruptions, or safety incidents could lead to unexpected costs or challenges. These risks aren’t unique to Chesapeake, but they are important to keep on the radar as the company continues to scale.
Final Thoughts
Chesapeake Utilities has quietly become a reliable name in the regulated energy space. Backed by an experienced leadership team and a clear strategy, the company has delivered steady financial results while pursuing targeted growth through infrastructure and service expansion. The stock’s strong performance over the past year reflects a business that’s well-aligned with its long-term goals.
Even with some exposure to debt and regulatory factors, the overall picture remains grounded in operational discipline. The approach is measured, and the roadmap ahead looks well thought out. For those interested in a stable, well-managed company that knows its strengths and stays within its lane, Chesapeake continues to stand out for all the right reasons.