Chesapeake Utilities (CPK) 23 Feb 222022 Q4 Earnings call transcript

Good day, everyone, and welcome to the Chesapeake Utilities Fourth Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions].

I would now like to turn the call over to Alex Whitelam, Head of Investor Relations. Please go ahead.

Thank you, and good morning, everyone. today Year highlight Results joining Quarter Utilities you Full and for appreciate as Chesapeake we Fourth We XXXX.

despite with As release you financial year environment. issued press changes results strong yesterday, the the saw company finished in macroeconomic the sweeping our in the

Given delivering outlook, increased top-level and and performance. our our long-proven positive which expenditures guidance, continues results track our EPS XXXX we capital record of

Beth call Cooper, on Jim As General Vice Corporate Chief participating today the are Chief and X, on and Assistant Jeff Corporate and Slide Counsel, Financial shown Executive Moriarty, Chief Risk me Officer; Executive President, and President, Officer, Officer. President Householder, with Secretary Policy Executive Treasurer Vice and Secretary;

have other of also team members joining management We our us virtually.

our Events page on prepared the Today's up After the our be website and we subsection. questions. presentation and will open for remarks, call accessed Investors Presentation under can

that this discussed Moving may include to that you Slide statements matters risks remind X. like call conference to involve and in I'd forward-looking uncertainties.

projections and from could materially statements Forward-looking results. our actual differ

forward-looking harbor differ on information XXXX company's XX-K Form could safe of results. the statements further The factors actual our such statements provides that from cause to the section for

and its is has provided Additionally, G. in the in margin performance our non-GAAP company of margin of release. on in GAAP presentation and earnings reconciliation A evaluates the with the gross non-GAAP to provided gross adjusted adjusted disclosures appropriate Regulation the based accordance SEC's gross this margin appendix

Jeff? company's to our performance. drivers results, key some Now including of the I'll opening remarks to turn financial on the over provide call Jeff record the

increased milestones, earnings, XXth like thank and was my on backbone of with of our our a employees morning, very that for and few Slide consecutive congratulate of Good the an forced of another you work dedication X. achievement our In year least on colleagues impressive our XXXX, hard Alex. Chesapeake record success. for joining you, which of at call hit the to Utilities. and year today. Thank companies not is thank all are accomplish. important we To number the start achievement to The I'd of us and

year, XXXX. throughout X.X% of per was more earnings level the $X.XX, earnings increase to the and reported of management compared the margin share than which was year. This of result incremental growth an million For we continued adjusted gross $XX expense of of

They increased growth both growth strong margin driven and customer in largely our margins transmission expansions, distribution and natural was businesses. acquisitions, service our demand Our in by pipeline for unregulated and from replacement also gas benefited service territories. services Delmarva recent Florida programs our

colleagues interest to year our environment. great while We managing this expenses in work A took all higher and like associated by Beth important to a all. steps level I'd our margin generate inflationary again throughout across job with costs thank will increased record a talk rates mitigate but the about businesses. to bit, hard of the who growth

consecutive was dividends. year of quarterly XXnd paying our XXXX

consecutive annually Our now of increased at dividends track years. paying stands XX record

upside for through to investors. continues to our dividend conviction earnings long-term return strong Our growth growth support provide

Our than level anticipated. investment XXXX capital originally was lower

million in year, we capital $XXX For the deployed expenditures.

me timing in issues. projects project As complete That during supply to the mentioned our impacted our we ability and said, second were simply regulatory chain delays quarter call, delays our let year. this and reiterate point,

approximately are The will scheduled shift of now last XXXX delayed completion million planned for to capital expenditures projects expected XXXX to $XX that and for we in year XXXX. were complete in

in The in year. was FERC we slated December FERC gas projects, of example service install until approval to final originally project system XXXX. an additional last late on one received recently approval these compressor go of an transmission to natural Delaware. our delayed Eastern of As Shore in The was

to of customer have meet year. capacity to the our The expect end base gas peak by compressor investments systems, our Project the compressor Delmarva on to service of example the just across service customer will support making the serve this we're distribution we growth in additional Eastern growing The load and one and is Compressor base Shore territory.

customer gas the a more We XXXX. the increased into by service natural X,XXX, dig demand a increase residential X% saw I'll bit host I'll for it but a customers minute, for over in year. gas

in customers business to and Florida. XX,XXX over in the during new Our the with continued propane acquired addition of year propane North acquisitions two grow Carolina

blend. this flag second natural phase year. to fuel scheduled for interest continued in renewable we of sustainable at hydrogen also natural and May our of through advance gas in gas facility, our eight test eight CHP investments testing energy a We In hydrogen the a and have flags

as we we our deploy XXXX, significant ability capital. in at have confidence growth So over to look

mentioned, in we have we growth and Alex earnings our speaks increased confidence As Chesapeake's guidance, the expenditure which to have capital long term. the over

We'll talk about presentation. this the later detail greater in in

X Slide energy some of sustainable territory. to turn our across service recently announced me our projects let cover that, to With

We for which continue X to sustainable footprint, growth. of platforms opportunities to increase our our one identify energy is

few recent a projects. of highlight me Let our

patents in announced Chesapeake prove to Found Found RNG operating assess to Maryland's provides we expertise shore. Development. facility poultry-based operable our in and poultry we valuable Energy call, we an projects. invest as Planet to eastern waste test waste to on continue last As recently will Planet The employees opportunities energy acquired technology

million a system the Maryland, in process gas in of gas We're acquired vehicle will the state to in supported Maryland Florida. a natural continue $X a also of fleet constructing has cleaner partially gas development our of X.X-mile that operated goals, Florida energy and fueling from sustainability the we're a an is where helping in sitting achieve fuel customers also the natural clean to not receive Leaf compressed their Davenport, natural opportunity ability office Utilization grant distribution fueled facility by morning. burning from pipeline vehicles fables far this U We connect by as of and station owned this to CNG renewable station the RNG

It's fuel to into ability Florida We efficiently recently our to an the system. accept injection point. interconnection Florida first receive state. We CNG, point now first into the one RNG system and and our LNG RNG in completed the construction have of of distribution Northeast the alternative

Turning Florida, adjacent be the anaerobic transported Slide renewable to commencement excited facility year. bring pipeline at digester cows. our deck full Full and dairy Dairy Located announce of OFMs market. our more on in drainage in full farm Madison facility production first solutions Suwanee week the we north gas of the our construction in is project important Florida. Farm of which of were than component set growing home to from hundred the Circle Circle per to X, River to converted than RNG will this a is natural Dairy renewable scale to X,XXX natural build gas County, basin to to The we'll central farm, Circle Dairy's more our quality full thousand Manure an

tons RNG. natural dairy market the gas Marlin offtake year, project redirect the our which of anticipated tons COX compressed more equivalent. methane XX,XXX r The of we're metric evaluating green the to service gas the will produced is trailers is g Florida than point, metric options of of to equivalent Yuli several and Initially, XXXX our per transport attribute capture to injection RNG and

look reduction the at per equivalent homes it powering to to emission is year. X,XXX is way Another

have excited and RNG an and ground, project, we progress projects lies a As these project production job our We're the marketing. and we're we've as in ahead bit the of with said has the a energy number done developing team in projects Planet g what get pleased both take current pipeline r for off and first found, the of in for pipeline in our excellent dairy quite the sustainable to types acquisition platform. past, RNG expertise Ohio, as our of on additional well the

platforms these the four. and further initiatives, let briefly me sustainability for touch Beyond we have other growth on

we and As throughout level on we shown in organic to Florida. significant fourth natural seven, all our high continued Florida in across growth This and businesses quarter organic saw year, increase service Delmarva distribution growth both in we as an territory. our traded X.X% X.X% of of gas the experience continued on where slide Delmarva the

These of longstanding We territories, highly the remain with to much across late. as rates as rising key The levels despite as dynamic behavior well cognizant service be uh, state testament Delaware market. relationships developers, our Florida, mortgage a fluctuate mortgage that of bit especially well continue above in along of and housing the customer nature could given rates settled the the of a have average. our national growth the beaches future consistency the attractive our of to is

term That demand strong sustained said, over our continue as we the report see long backlogs. to builders

throughout choice our and that we propane remain the constantly home reassured Additionally, energy for gas areas. service buyers are sources of natural

distribution our capacity high business our for drives the in of levels systems. discussed, transmission we're we've growth the customer in experiencing need additional also As

and for recently we support continue Yulee a significant wildlife our Eastern drive Shore headway We'll new transmission will beyond. I development to to projects and the that phases others XXXX of in the of growth expansion These mentioned fork projects with significant Pipeline community announced Florida. Expansion number including system approval deliver business. Peninsula made in the a marketing recently in propane for growth Compressor also Also our earlier Edition. of Southern the

before the we area. completed Florida the which Tampa, Gas, service Hernando the During in our expands of territory acquisition

core performance to X propane our of component was in strong growth on We the thousands sixth Fernando a last recent the for company serve acquisition reach In gross continues propane completed of gas systems. remains the we've margin. years contributed city of customers Davenport and Silo, hoping strategy. XX incremental our beyond diversified Gas in and acquisitions adjusted Hernando that million XXXX, Energy than are natural Propane more the Division of drive

also schools, expand use commercial auto we're energy of emissions is public and our expanding achieve services a burning is to gas also territory, for local of XXXX desirable lower service in another to year serve. drive and record to communities product gas, cost production use a performance Propane Marlin. saving. Chesapeake. at highly continues cleaner for Marlin the margin source we transportation customers the solid able fuel By

serve and skill we Marlin's the market. including expand gross pleased horizon We especially margin needed increased market recruiting as remain relates difficulties the for transportation to to drivers adjusted the increased growing the services, additional At by on business, the Despite Marlin. transport operators X.X year and energy we challenges supporting costs million. have to sustainable opportunities it our with

in call Beth over the our to I'll With results to details. turn discuss more that,

you, for outstanding I'd acknowledge year. be not to success and everyone. of like our work incredible the our without Thank workforce. would also congratulate possible Achieving the and Jeff, morning, good an team talented

Let our some additional me recent performance. details provide on

and on of drivers margin key and earnings for X diluted XXXX. per cents strong see from increase Gas the As the organic our over of for and Fernando slide Energy, X, meter were the businesses. X.X% continued growth included expansions in Davenport, customer the year, some distribution Diversified gas year More you'll contributions acquisitions share infrastructure natural Theia an station, $X own specifically, of

in programs CNG, Also, RNG additional growth legacy increased mechanisms and various units. finally Marlin business from higher and demand gas margins aspire there infrastructure LNG and Shore and the our consumption per Elton in and Eastern in for distribution protein increased our Florida, We services our gallon energy businesses regulated and was achieved propane recovery natural businesses.

shows income financial up quarter, gross On year compared income year's in year, for million and over fourth fourth Operating full the summary respectively. and last to increased X% XX.X% adjusted XXXX. operating increased slide quarter the XX.X was million an $XX.X impressive the quarter nine, and margin for our

year Chesapeake over consecutive still While X.X%. a increased over delivered earnings of its and interest cost year, six-piece increased of at year pace XX%

let the drivers in key slide the earnings of our On growth approximate me XX% through walk XX, quarter.

generated tax in earnings incremental Contributions for we income federal interest gain an a our from from received acquisitions First, from recent the $X.XX quarter. refund. a penny recognize

that margins Our increased recovery delivered organic and and margin higher $X.XX operations This programs from CNG, higher distribution, expansion increased additional share. infrastructure along from poor transmission growth our our and natural adjusted projects, RNG our margin regulated propane income by per from LNG businesses services, gas additional contributions includes aspire mechanisms. earnings from performance growth, with

acquisitions tied to the expenses XX propane cents. Operating represented

associated to ability of property standards safety spending a team's reminder, in new costs $X.XX a these we operating were a and operating the $X.XX costs which acquisitions impact, Higher expenses deliberate drove business, have our our depreciation, core closer tax Chesapeake's across capital investments and amortization been businesses. the align to manage to protocols our higher with headwind. speaks in As to

quarter. and interest negative were other changes the to significant $X.XX a impact Finally, for earnings

the also EPS portray details We like we netted to walk I considered quarters XXXX like non-recurring our should highlight for other growth XX, XXXX. slide but the performance. to won't On that interest year. expenses would to the non-recurring and bridge, that while a evaluating also and significant businesses drive like core our out that earnings so a I'd to all these would acquisitions point to to year's growth the when on items continued from decline similar items out remind and higher be incremental through $X.XX the in XXXX through everyone weighed

segment in the our Before to point outlines to the our we analysts years. to X last added and to results, the like quarter I'd of jump investors over we seasonality quarter a earnings slide that our from appendix also

Moving me to those next touch Utilities two operating slides, let Chesapeake on segments.

fourth gross XXXX. the million X.X slide X.X% segment Operating increased deferral with the On income reduction see other for income and for XX year was expenses pandemic. of for full included margin from impressive up certain for regulatory adjusted in operating X.X% a operating for associated quarter year. X.X% and energy XX, The regulated COVID the the costs XX.X% resulting an XXXX the you'll quarter increase

associated gas operating million in growth, Escambia being pipeline by benefit base various in expansions our driven about same incremental station rates proceeding was business, from actually this Absent XXXX, from distribution contributions the by of our over with our meter those finally, compared the infrastructure or programs, XXXX. and of factors months income We've This gas XX% organic and talked contributions transmission natural primarily already to X XXXX some rate the increased XX.X natural acquisition. Florida systems, interim growth

drove in are fourth margin adjusted performance quarter exceptionally XX.X% unregulated to the with gross and XX.X% Turning slide by XXXX. segment increasing for XX energy strong

again performance in by again acquisitions, improved propane a distribution unregulated and our services Energy. primarily quarter businesses over and demand at completed income and a for the XXXX. increased operating the CNG, contributions delivered propane over XX% increase Additionally, This strong year RNG increase fourth was margins from recently increased for year business. those Marlin XX% are our from LNG finally driven Aspire Also, performance

some highlights strong balance slide position. sheet I'll On provide XX, of our

As on notes senior last we be of XX life XX year to we to will with years million Prudential a March. at call, our X.XX%. issued and issue coupon XX The discussed our notes announced average in of an of commitment

swap the rising of Additionally, of the of agreement also million fixed we into a is entered a with rates mitigating our north rate the $XX three-year fixed rate sofa for at debt X.XX% interest rate, swap short-term rates. of impacts current interest

green our fourth X.X expense the sub found of in million over for we Additionally, planet with short-term limit facility the quarter, year. our funded acquisition the Interest incremental was XXXX. an

the regulatory rates other to XXXX financing forward rate and Additionally, mitigating manage We'll interest these cost through at we remain continue and throughout including these to interest appropriate as curve, will alternative overcome we elevated impacts options, XXXX. to pressures steps take mechanisms. management, like look strategies expect and

an debt, At XX.X% rate debt million, at totaled now again equity, XX XXXX financing March year included XXX term attributable from to range, fixed average capitalization debt to with million end, from XX.X% X.X of XXX of billion. to which in is total approximately and X.XX% the This our XXXX. target capital decreased which long-term of within XXXX, long and XXX short million of million completed term stockholders

also recently with capacity We agreements capital fund long-term two where amendments outstanding debt providing the our investments. executed to us future shelf additional

balance our Chesapeake our year into we'll support the which actions expenditure As of result capital took the positioned XXXX, to sheet moment. discuss thus a far and well remains in and strong guidance, we throughout just a remains expanded

track increased capital and the of earnings value. shareholder record are our investments growth delivering long-term of drivers long These our

projects, through RNG and will XXXX regulatory drive acquisitions, the pipeline Moving XXXX. CNG, initiatives strategic and growth to LNG highlight slide our and transportation that expansions, XX, we

it all As does remind and this you not indicative not pursuing. growth evaluating that table projects are include and organic always, is we we of the that

to As others expand Jeff margin deliver mentioned, yet not poised projects businesses. our pipeline of across continues to are growth opportunities and higher growth these announced our

and We're continue horizon and and the look other RNG we Dairy see growth. for the planet transition, we opportunities bringing to full the to facility, excited path market. investments, energy with long-term provide these pursue, a forward Additionally, on the opportunities projects circle Sound, support like sustainable to sustainable

approval are XXXX. in more million Jim adjusted in case, million in interim the initiatives more in rates. XXXX to margin rate mid-March, to in of in in XXXX gross is this a XX the Jim XXXX approximately Final visibility and cover associated than expectations from added margin but expected with gross these again, in and and margin in few we minutes add adjusted and discuss detail, X.X the expected given Florida in level have included will additional combine have XX.X addition XXXX will million just our contribution recorded we we XXXX

As will as or announced are new add we them a reminder, projects finalized, table. initiatives this to or

level key an XX, XXX slide for in complete. more are million. we to projects, expansion especially than investment margin pipeline expected of the gross approximately adjusted planned per once with highlight XX our million contribute Moving to activity increased XXXX year These projects of

that, would we which are the to another remain positioned maintain saying With quarter, well year our pleased off industry-leading fourth our track to capped like of record for performance. the for I company. finish record that by long-running results with We

always growth, pipeline our and expand continue will our talented regulatory organic long-term workforce, stakeholders. Given hard sustainable success opportunities business, favorable our we our of do, work to relationships, for to our as to we drive strong our

to now discuss I'll ESG Jim Moriarty our the regulatory and call to pass Jim? updates.

good consolidated. gas rate of details all. units, XX.XX%. Florida common XX January natural Florida. million in good It On Florida approval which our Slide base of will PSC the XXXX, approved XX, and including the $XXX.X return to a be now included regulatory X This is for morning. gas On equity approximately you XX proceeding with you, on case and Thank be Beth, initiatives,

The approximately X, are gross rates all $XX.X recovered the will meter the in readings XXXX. through be to the implemented million, March vote finalized will surcharge into reliability incremental Tuesday infrastructure be PSB for gas addition and expected million In of $XX.X beginning on rates. margin to incorporated program be adjusted base formerly following mid-March, new

the Additionally, system approved of allow Utilities event Florida were of These a investments of and Public prevent to our storm quarter protection recovery plan protect XXXX. of storm fourth electric mechanisms for the in plans the protection in loss cost further plan and storm service. recovery

plans gross these adjusted $X.X approximately for continued $X.X and associated with going expect million XXXX in forward. investment million We margin in XXXX,

is completion its and infrastructure Through began reliability mains, reliability which SKU of mentioned, for to gas of have increasing Floridians. systems safety our of XXX XXXX, the we nearing end $XXX more approximately As program, million qualified XXXX. replace distribution miles of the in than many invested

for in to going XXXX adamant systems we towards of Elk by generate service expect the XXXX and forward, In end project the integrity in beyond. gross $XXX,XXX in invest margin Maryland, into continue adjusted and we upgrading the the will

Finally, capital natural gas mandated required projects, authority safety our upgrades. has recover costs along relocation and Eastern transmission Shore FINSA with with to interstate associated railroad unit highway

that program XXXX. and adjusted in in We million gross generate XXXX this will margin $X.X additional expect

too like to to team. XX. my Slide Chesapeake would express Turning to I and sincere the appreciation gratitude

Our performance Chesapeake. at strong here culture clearly the exemplifies in XXXX

on our Throughout leadership training, the includes and to professional development was platforms. system new The training these system course of numerous engagement. our streamlined offerings example our on initiatives all one Grove. implementation called year, employee With this the curriculum platform. LMS, of and steps enhance One elective we took learning we have management virtual new the

in their program high to challenges engagement, that of Additionally, employee access our award-winning The any fitness provides These for content voluntary empowers driving are health our levels continued which culture. and and employees is more wellness which at efforts well-being. fingertips. resource Chesapeake a employees time we total engage their available wellness company with unveiled encourages and program,

Most Workplaces This recognized companies. and high named recipient year third recently, represents a Chesapeake this the USA Top consecutive have XXXX award received was midsized for we honor.

carried on XX,XXX this is award and top by within the participate very workplace thank each us meaningful company. I'd culture were top each everyone our our who prioritize organization based recognition in leader than people's across make of like speaks This employee voice. employees and organizations strong is the of invited a survey sell to to Receiving to which workplaces every U.S.A. so employees The being the USA feedback. More is successful. to

like we community a approximately engagement community stride Referring highlight XX. also to focus commitment in and our to to sponsorship. would significant safety stewardship, Slide made environmental and with the serve. charitable XXXX development, education our strategy in made on contributions to advance and I community health, We'd community $XXX,XXX we a

Thank to Jeff today. turn I commitment a community for Chesapeake and to live. call our great With be you that, employees it's with some work better now and to closing to making a the you place will back all their generosity to comments. for

of our and strong for the expectations. increased performance capital and growth, earnings investment our our overall Given in in pipeline XXXX, outlook projects we've opportunities our

Let capital show impacted deploy me with expenditures Slide historical our ability to we XXXX, expenditures capital our on begin where capital. XX, going since

capital $XX XXXX. of million investment total investments see shifting to million year. we into million $XXX Therefore, this expect However, of we $XXX approximately

also acquisitions may any range. this not that we recall include guidance You in do

So potential in closed XXXX and guidance we be would adjust accordingly. would additive, any deals our

million the midpoint period. in XXXX $X million This updated previous new the to we On Slide for range billion billion. compared XX, $XXX through a of $XXX at our to we've $XXX $XXX invested XXXX million capital XXXX $X.X increase range to our long-term and to range XXXX, have given expenditures indicates million

expect $X.XX an Slide per guidance. to from our now guidance diluted the $X.XX. to deliver XX, increase $X.XX our EPS range XXXX, to range to $X.XX. of Turning In let we in me of is provide share updated previous earnings This

remain close To compound and performance, financial Chesapeake in for deliver a was beyond. and represents we Slide growth period to with year range strong new X-year performance another XXXX rate the over record through Utilities. XXXX well We're annual from positioned X.X% XXXX on pleased XX, to of Our XXXX. XX.X% our

expand us balance one serve top track Our see for we proven the and businesses. continue our regulated We're highly the opportunities business our the strategy unregulated with sheet, performance. bright to communities a allows also paved quartile record and to and strength excited our of model, the of complementary that future, the sustainability we advance utilities financial with way of along our

with And we it why for Alex, open up that, don't questions.

Todd, open the please Jeff. line. Thanks,

[Operator Instructions].

Ellinghaus come Williams Our will Chris from Siebert first with question Shank.

so we your your project, in from expect What expecting news should and RNG that can we acquisition next new be given or the efforts months out XX of additional area?

I hope would Well, so.

as fairly focused now, might think project announced on Circle and afternoon. that later are We the imagine, this right you I Dairy we've

a having that ground we're fact, over site. breaking on In

so under And we'll year. part next be construction of up working and pretty hard and that to get the early running

opportunities with year Florida. along we waste. last Gas into our including And for with the engage bring business point continue in that the obviously beyond new that, Marlin for Uli, look assets dairy that additional transporting Services expertise technical would we Planet bought interconnection to to and notion from that, our And we Found deliveries in R&D, poultry

And so we're continuing to pursue that.

at Circle a states, And certainly take of We're going of are, there the then the support would delivery Delmarva down for development build RNG transport and couple Ohio. a in pipeline certainly opportunities area, look I continue Marlin a waste energy at of to gas number into hard on path Florida Dairy. think, in market to and RNG. that for [indiscernible] very we opportunities So to processor Full other projects the the poultry-related

that Obviously, deliberate stuff. you'll this projects. think us first hasn't of We're to been out look for pretty actively We're our not about course thing trying we I action. running see. buy So see that the

our not of these and for environmental conservative only we're projects, view in are for they objective, our fairly things support shareholders. but profitable We also are an looking that

So exploring we're opportunities. of carefully lot a

to was Okay. related overall? confidence just Or that anything Great. guidance, increasing The increase specific in is there the that?

there's were process mean, It then at And you're strategic the Chris have familiar, really. every is underway. planning our I projects a enterprise. as undertake various looking we year that we projects across both, multiple that

we've looking out of next come into at of kind we one. our planning last as projects, so And the session, recently had right strategic

that regards and And opportunity land the that are and into to would thought end. both those go the evaluate to likely projects where start the to us really $X.XX, that so And the where high it at CapEx an at going to impetus queue underway to raise earnings. was we are and low in those gave

as that XXXX supply years of do And next Okay. behind the affect you and are the goes, like chain likely affected capital? to feel as aren't far the issues you few

was that like our that a interesting, our seeing get customers I'd lot supply vehicles, customers were impacted some or ultimately issues the potential of We supply our like example. accessing to having chain meters or that It It pipe issues. case. projects or anything we chain or were think that's that. of couldn't the for fittings CNG wasn't difficulties

that So the other across of vehicles were delivery chain same poised type chip issues fuel. we also vehicles affecting were supply that the of we're affecting issues and to globe, the

vehicles. up, didn't And they example, so some of couldn't show show up the would get because the margins, for that we presuming were

And see CNG. throughout the clear markets of that we're outside beginning vehicle as seeing up so to you're it

number back when volatility that in think fuel around take what some gas to were customers, gas. that natural customers you had creating moving saw And with caused fuel their we're toys. We contemplating supply changes a and doing step areas, also the a some of obviously, prices to conversions scale natural market they customers large the about the

seems And most the back so be of to but where all that to see of hasn't dropped out cleared now to moving up we'd it. volatility like that market has it, because

to choices issues and issues So access as of trying lot were customers that our we so make vehicle was those wasn't kinds much us affecting it a us, have products. it for and of

lot... That makes a

will add you the would I sorry. undertake. in many things thing we I'm be Because Jeff, reviews was regulatory other delays this that we be hope the to want one would only going see if of that as our projects of to some to and add, in the not

carefully guidance CapEx that look this for And longer at our expansion expected. than we to Southern so but example, year, set for our very think and lot that as Chris, we've about we've a originally tried took project,

that's, around... but delays regulatory hoping of there don't some could experience uncertainty did we XXXX, be in we we're to and So me, those that in something that permitting XXXX, experience

you Yes, in but that's actually it especially I we've seen what at longer than just at to well, are you've seen doing excellent we traditionally also in the us regulatory seen going processes, past. the point. tell contemplating FERC, cases, what I'll that an think now take is you And haven't state level many are

And the timing we're on to of especially and to our build and in, of that on. margins forecast so the projects coming obviously, projections these beginning timing

put But in schedule to growth. You northern this you guys territories? the have closer regulatory strong continued with changes inflation, has have customer very any to

Chris, we're growth into very in Maryland acquisition to to strong be in that in our did going basis, that we'll continuing, territory. Maryland, we required an of -- again, service approaching on actually But We what part did a and go as see consolidated we we are similar back Florida. be to customer northern to

we coming strong monitor go have where cases they're been returns we'll certainly, rate Delaware, In us as to basis. in. date, But on our do for having customer always seen you've without a to to that's us in routine sustain so our far, earnings, able growth

So to we continue evaluate it.

at strong, the for the is to is we'll it, monitoring in us far, appropriate So keep go time. opportunity but growth always and there

Russo our with [Operator next Brian Instructions] Company. question Sidoti We'll take from &

on regulatory follow the Just strategy. up to

all in cost You're XXXX from it's of XX-month like the a of the seems year. And PSC. specifically I It believe forward final items that back approved service. on test pending obviously average Florida the order were January,

me expect able could file base rising pressures at what interest do segment. And Maryland? then And contributes? the you capture you're segment rates just overall rate quite remind a to you regulated inflationary percentage when to of the It seems bit in the a the your or regulated and if follow-up, as of Florida overall just

in about just the you get in a can Florida it when you to overall, overall that XX-XX when you investment as specific Florida investment look company. regards XX% all regulated, Brian. is company. I a the and But look about regulated our throughout And it's includes business, So split. at a more total numbers, at And on of investments

regulated. single a of itself largest the regulated is and portfolio. state Florida actually in our So big which operate piece It's by are we very

initiative had case know, prior very the as consolidate in in significant. that rate It we all been of went case. so we significant And you was rate SPU was since our -- businesses various that also in not whole to this to this

was around XXXX. to our Maryland early Your back requirement which second come question, Maryland, as in

get for preparing that and you year. So ready we'll this be

of And the yes, margin on only fair both say Great. opportunities. or of project margin look growth, have Florida off. it's Is so through now grow contribution. XXXX. to to million for kind seems that large RNG it in project you Okay. It just in -- when at Northern the incremental I $X And Delmarva about and platforms

of just and XXXX, that up So terms we in see in of contribution. scale maybe I to been was going more as are kind maybe ramp margin curious, contribution have announced these projects

halfway plan come will the Currently, circle [indiscernible] on we're full is -- through about anticipating XXXX. that

looking that of XXXX. And full particular project, so of used the full we're They're electricity. that being right generate that to case Found, we to in be of that's taking the had do you speak, facility benefit up year the generated being now. so that some gas, in the that there's would scaling particular on it's out would In impact indicated the project, see as to Planet facility

we're gas, opportunities -- pipeline actually small looking transfer so to a part or natural of process to actually to at quality And it be that. that some

also Brian, yet. that of lot opportunities But again, we a that. there's haven't to potential beyond into said And some motion expand

they the know I can add if that. anything. other So you don't you again, years you you talking from or the as beyond indicated, of actually that But realistically, for take some to we cetera, want start, facility. that Stuff. think permits, I the you're There could Jeff and all et construct XXXX projects, several be announced. get time

said. No, I that's think well

expanding you of federal looking that things the supported guys of program have so and into at this issues the displacing to at, directed be we the attributes emission may green are as were that and well, One are attributes for renewable diesel that while out projects originally electricity. the looking these toward credits the Ford And appears ERANs. vehicles as been coming that gasoline

for that eligible list or electric pipeline cogeneration to quality move significant be you generation projects as potentially, were other some of mentioned, at still convert credits. with could renewable generation a see so Beth on projects and into them site a some a And to gas, the our pipeline, and gas, fairly as

are And renewable these market into pathway many from trying to projects attributes have green hold opportunities keeping those to electricity to so a at us that California attributes of change to the energy opposed them and view other the thinking for to them. into of that's states looking and pay green of us as renewable beginning that generating delivering economics and the about to introduce

some an a opens It just one scale especially So interesting we're evaluate for actually interesting possibilities and as these up very shift starting projects. us, it's of to number that well. smaller of

is the been sense well point Okay. And clarify do embedded the that in Great. currently in meaning And it projects just case to side triangulates I'm accounted incremental... what XXXX it's the as we the regulated as And at your unregulated projects projects on get but base announced trying the with that guidance. progress new all the how have in base for, for awarded then CapEx become after case. to CapEx, increased that a on guidance? are achieving be projects to your might lastly, track

answers guess, would Brian, if don't know I this question. So and your say, what I I

-- at feel So for if looking as guidance at I project. are to in XXXX. forecast to were say projects for year CapEx announce have constructing ask be unregulated looked again. our what that dairy are We We looked facilities side, dollars capital about and to then a it and Circle to related that what would would doesn't, Full those expect that filed motion. to in we us those this projects wanted or undertaken our and announced, me begin identify please include to to we filing But at that is be trying on like far pretty the that investments we're along the free

this acquisitions the is And provide and does not it more number transparency does not include are include, opportunistic. to to out then we separate what try finally, because for those us,

level so that base actually And we've to the the the that CapEx way actually CapEx now within that going chart the acquisition. deck experienced reason back was in all of and broke the SPU was that we acquisitions, organic the the included we out included

we coupled can And with announced be very year, are that dollars year. rolled feel XXX it, to be we XXX free far soon over, later with see year. the please the like it for again announced If this again. to along so land should a you just ask missed either undertake little projects really And or that to the that that this we expect level feel I that to

question next from Group. comes Our Maxim Tate with Sullivan

put and On press Lake I the the phases about mean, detail such Wild development you expansion, the that project. in housing a of big project release

injection pipeline vehicles is the permanent point your into probably Marlin of the project injection completion that XXXX? does through on... So Or entire almost that use pipeline

serve made. a was trader a from we development down RNG on from it's point expansion actually that pipeline delivered that permanent the installation pipeline landfill other to the over a from actual loads waiting that it. miles utilities referenced. Actually, already injection actually you Wildlight project that It's We've few into of X,XXX a

County really placement get the that nasal County. right So actually injection down our and now And can it's gas you the point. the Duvall serving a fairly active of point entire

from circle remain, RNG So be and full will moving the it into will point. we that are

fairly So located serve of just including Flags Eight before with. but our on potentially over it's CHP it [indiscernible]. plants And will certain customers, not Wildlight, I'm other

capable LNG R&D, receiving It remain service. and just as will service. in but it's obviously not So well. It's of in CNG

could use as an R&G peaking point. facility service So deliveries. can use it as obvious a We or we it to emergency provide

this of used your that objective actively? the Or in say others? you Would service do that's territory, kind have first entire is you

is. Yes. Yes, it Yes.

service points with, scattered before X engineering design, of suspect at looking already a in building we'll Peninsula. over couple I have areas. like across And it's we're X the other northern are and more We that or Florida in our

trailer I that you order tanks comment, do mean mean operating comment, X,XXX I from Marlin, with and build capacity are Marlin? to at And you are -- mean, more full can you continue at operating? Or online? I if loads with you

allows Well, order to. as the market we build us and

when are so more the Florida. I mean, But there. our marketplace capital to mean don't actually the accordingly, North landfill in X,XXX the loads vague opportunities And in tank obviously, particularly increase be encounter we from than we as assets I X,XXX

our project, it a the landfill us provide one the nice for was of not to RNG Florida. Again, opportunity which for the in utilities services here developer and of sister operator and was us

that contracted move opportunities to bought to That's we look And Marlin why with company what of from so do longer-term R&D. we're and exactly trying for we it. those types

Florida. the all we're opportunities time, in for So just looking not those

while Delaware your Is housing the pointed many housing you housing a bit Analyst forecasts of Wildlight And development of remember one larger then is Wildlight I on housing? ago for than development? to projects. much mean, I Days, developments or any in going

question. mean large developments I as there on -- and would Yes. about. enormous to but I wouldn't wouldn't is that say, say we've talked Wildlight say your housing there I Peninsula, huge I [indiscernible], are the

by large And or XX,XXX themselves. up cannot developments that that recall north so any I homes,

You much they developments development, may are substantial have there. Brothers smaller, have up a others group of but development. Certainly, multiple built Shell and

of scale I overall individually. type smaller would opportunity, similar but So say,

that this going given represent projects with fuels you project is imagine the in more that then And mentioned that company’s you’ve company? forward. that And the first energy can clean the had release I and case? Is growth

have accurate. it I think this that’s something may somewhere before, for – is I as as done believe at the We way significant, along least but wasn’t is. them that this significant

a built we facility so Central down serve pipeline in their And to Florida.

we’d guys. those we yes, to And as projects many love could do as with

There back time. will floor are turn Jeff at any the Householder closing to for over this remarks. I no further queue questions or additional in

your us this interest to thanks joining you we'll appreciate talk and and to for company, you, of in the and soon. all morning. Thank bye. time Okay. your continued Good We you

your at and full fourth lines XXXX earnings Thank and this call. -- concludes Chesapeake year time, quarter today's Utilities disconnect you. This Please conference