Chesapeake Utilities Corporation announced its financial results for the third quarter ended September 30, 2024, on November 7, 2024, reporting a significant increase in net income. Net income for the quarter was $17.5 million, or $0.78 per share, compared to $9.4 million, or $0.53 per share, in the third quarter of 2023.
Excluding transaction and transition-related expenses from the Florida City Gas (FCG) acquisition, adjusted net income for Q3 2024 was $18.1 million, or $0.80 per share, an approximate 16 percent increase per share over the prior-year period. The company's adjusted gross margin also saw a substantial increase of 29.1 percent compared to Q3 2023, driven by FCG contributions, regulated infrastructure programs, and pipeline expansion projects.
For the first nine months of 2024, adjusted net income reached $84.2 million, or $3.76 per share, compared to $64.8 million, or $3.63 per share, for the same period in 2023. Chesapeake Utilities reaffirmed its full-year 2024 adjusted EPS guidance of $5.33 to $5.45 and its 2024 capital expenditure guidance of $300 million to $360 million.
The company also reiterated its ambitious five-year capital investment plan of $1.5 billion to $1.8 billion through 2028. This plan underpins the projected 2025 adjusted EPS guidance range of $6.15 to $6.35 and a 2028 adjusted EPS guidance range of $7.75 to $8.00, indicating an approximate 8 percent annual EPS growth rate from the 2025 guidance.
Operating income for the third quarter of 2024 increased by $20.7 million to $40.9 million, a 102.3 percent rise from the same period in 2023. This growth was primarily fueled by the FCG acquisition, incremental margin from regulated infrastructure programs, and increased demand for virtual pipeline services, partially offset by higher operating expenses related to FCG and increased payroll costs.
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