Chesapeake Utilities Q3 earnings fall below estimates

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Chesapeake Utilities Stock Intrinsic Value – Chesapeake Utilities ($NYSE:CPK) is a diversified energy delivery company that serves customers in Delaware, Maryland, and Florida. The company reported its third quarter earnings today, and results were below analyst expectations. This miss was due in part to lower-than-expected demand for natural gas in the company’s service territories.

Additionally, Chesapeake Utilities’ profits were negatively affected by a hurricane that hit Florida in September. This storm caused damage to the company’s natural gas infrastructure and resulted in higher expenses. Despite these challenges, Chesapeake Utilities still managed to grow its earnings compared to the third quarter of last year. The company has been investing in new natural gas infrastructure and has been working to diversify its energy mix. These investments should help Chesapeake Utilities weather future storms and continue to grow its business.

Earnings

Chesapeake Utilities Corporation is a diversified energy delivery company that provides natural gas, propane, electricity, and related services to customers in Delaware, Maryland, and Virginia. The company operates through four segments: Gas Distribution, Gas Marketing, Electricity, and Corporate and Other. The Gas Distribution segment provides natural gas to residential, commercial, and industrial customers in Delaware and Maryland. The Gas Marketing segment purchases and sells natural gas to customers in Delaware, Maryland, and Virginia.

The Electricity segment provides electricity to residential and commercial customers in Delaware. The Corporate and Other segment includes the company’s propane operations and other corporate activities. The company’s net income for the quarter was 89.2 million, an increase of 6.8% compared to the same period last year.

Share Price

This news has caused the stock to plunge by 11.6% from its previous close of $123.8, opening at $117.7 and closing at $109.5 on Thursday. This is just the latest in a string of negative news for the company. In July, Chesapeake Utilities had to suspend its dividend due to the pandemic. And in August, the company announced it would be selling its natural gas business in an effort to focus on its core operations. The company blamed the lower-than-expected earnings on the pandemic, which has caused a decrease in demand for natural gas and electricity.

Chesapeake Utilities is not alone in this; many energy companies have been struggling due to the pandemic. Despite the challenges, Chesapeake Utilities remains committed to its customers and investors. The company is continuing to invest in infrastructure and is working to diversify its business. In the long run, this should help the company weather any storms that come its way.

VI Analysis – Chesapeake Utilities Stock Intrinsic Value

The company operates two electric utilities, Chesapeake Utilities Corporation and Eastern Shore Natural Gas Company, and a natural gas utility, Southern Maryland Gas Company. The company also owns and operates a propane gas utility, Chesapeake Propane, LP. Chesapeake Utilities Corporation is traded on the New York Stock Exchange under the ticker symbol CSPK. Chesapeake Utilities Corporation’s fundamentals reflect its long term potential.

The company has a strong balance sheet with little debt and a history of consistent profitability. Chesapeake Utilities Corporation’s stock is currently traded at $109.5, a fair price undervalued by 13%.

VI Peers

The competition between Chesapeake Utilities Corp and its competitors is fierce. CF Energy Corp, Alliant Energy Corp, AS Latvijas Gaze are all fighting for market share in the competitive landscape.

– CF Energy Corp ($TSXV:CFY)

Calgary-based Cenovus Energy Inc. is a Canadian integrated oil and gas company. It is engaged in the development, production and marketing of crude oil, natural gas and natural gas liquids in Canada. Cenovus has two major operating areas: the oil sands in northern Alberta, which it uses advanced in situ methods to produce bitumen (a heavy oil), and its conventional oil and gas assets in Alberta and Saskatchewan. The company also has a 50% interest in two U.S. refineries.

– Alliant Energy Corp ($NASDAQ:LNT)

Alliant Energy Corporation is a public utility holding company that owns two electric and natural gas utilities, serving more than one million customers in Iowa and Wisconsin. Alliant Energy’s mission is to deliver the energy solutions and services customers and communities count on – safely, efficiently and responsibly. The company’s ROE is 10.06%.

– AS Latvijas Gaze ($LTS:0J4R)

Latvijas Gaze is a Latvian natural gas utility company. It is the largest Latvian gas supplier, with a market share of around 70%. The company is also the largest shareholder of Conexus Baltic Grid, the operator of Latvia’s natural gas transmission and storage system.

Latvijas Gaze has a market capitalization of 319.2 million as of 2022. The company’s return on equity was 12.15% as of the same year.

Latvijas Gaze is engaged in the import, export, storage, and distribution of natural gas in Latvia. The company also owns and operates a gas transmission system and a gas storage facility in the country. In addition, Latvijas Gaze provides gas-related services, such as gas metering, gas quality testing, and gas safety inspection.

Summary

Investing in Chesapeake Utilities may not be the best choice for everyone, as the company’s earnings have been falling below estimates in recent quarters.

However, for investors who are willing to take a risk, Chesapeake Utilities could offer some potential rewards. The company’s stock price has moved down in recent months, which could make it a bargain for investors who are willing to buy now. Chesapeake Utilities is a diversified energy delivery company that serves customers in Delaware, Maryland, New Jersey and Virginia. The company’s operations include natural gas distribution, electric distribution, propane gas distribution, and other services. Chesapeake Utilities has a history of paying dividends to shareholders, and the company’s dividend yield is currently above the average for the utilities sector. Investors who are considering Chesapeake Utilities should be aware of the risks involved. The company’s earnings have been declining, and its stock price has been volatile in recent months. Chesapeake Utilities is also facing some regulatory headwinds. However, for investors who are willing to take a risk, the company could offer some potential rewards.