Chesapeake Utilities Corporation reported significant financial growth in its latest 10-Q filing for the third quarter and the first nine months of 2024, driven primarily by the acquisition of Florida City Gas (FCG) and organic growth in its regulated energy segment.

For the three months ended September 30, 2024, operating revenues reached $160.1 million, a 21.7% increase from $131.5 million in the same period of 2023. The nine-month operating revenues also rose to $572.2 million from $485.3 million, marking an 18% increase year-over-year. The regulated energy segment contributed $130.6 million in revenue for Q3 2024, up from $102.4 million in Q3 2023, while unregulated energy revenues increased slightly to $35.6 million.

Operating income for the third quarter surged to $40.9 million, compared to $20.2 million in Q3 2023, reflecting a 102.3% increase. For the nine months, operating income rose to $161.3 million from $103.5 million, a 55.8% increase. Net income for Q3 2024 was $17.5 million, or $0.78 per share, compared to $9.4 million, or $0.53 per share, in Q3 2023. For the nine months, net income increased to $81.9 million, or $3.66 per share, from $61.9 million, or $3.47 per share.

The acquisition of FCG, completed on November 30, 2023, for $922.8 million, significantly impacted the company's financials. FCG contributed $33.4 million in operating revenue and $3.9 million in net income for Q3 2024. The acquisition was financed through a combination of equity issuance, senior notes, and borrowings. The company issued approximately 4.4 million shares at $82.72 per share, netting $366.4 million, and issued $550 million in senior notes at an average interest rate of 6.54%.

Chesapeake Utilities also reported increased operating expenses, totaling $119.2 million for Q3 2024, up from $111.3 million in Q3 2023, primarily due to FCG's operating costs and higher payroll expenses. The company’s capital expenditures for the nine months ended September 30, 2024, were $256.8 million, reflecting ongoing investments in growth and infrastructure.

In terms of regulatory developments, Chesapeake Utilities filed for permanent rate relief in Delaware and Maryland, with interim rates approved in September 2024. The company is also focused on expanding its operating footprint and enhancing its service offerings, including renewable natural gas projects and various pipeline expansions.

Overall, Chesapeake Utilities demonstrated robust growth in revenue and profitability, bolstered by strategic acquisitions and regulatory initiatives, positioning itself for continued expansion in the energy sector.