Chesapeake Utilities Corporation (NYSE:CPK) Q1 2024 Earnings Call Transcript

As we look out, certainly, we’re looking at FFO to debt. We don’t put a lot of metrics out on that. But as we did the transaction, we wanted to make sure we stayed at an investment-grade level. That was important to us. And so, you’re going to see us be well into the teams on our FFO to debt, mid-teens to upper teens as we look at it. And then finally, from a financing, we will access the capital markets as needed. We have historically dribbled out equity over time. I think with the strong cash flow that’s coming from our larger enterprise and looking at the cash flow, certainly, for the first quarter, you can see it. We will need some small equity infusions, but there’s a lot of cash that’s going to be able to be reinvested back into the business.

You’ll see us doing some debt refinancings at the appropriate time. But you won’t see any heavy, heavy equity lift, certainly like you would have seen with the transaction or anything like that, small dribbling amount over time. And if I missed anything, please let me know, Paul.

Paul Fremont : No. Just does that equity issuance include this year or not?

Beth Cooper : We’ll see as the year progresses, certainly, it could be some very small amounts, but nothing that would be deemed significant.

Operator: [Operator Instructions] It appears we have no further questions at this time. I will now turn the program back over to Jeff Householder for closing remarks.

Jeff Householder : Thank you again for joining today’s call. We are very pleased with our first quarter performance, including the many capital projects that we’ve initiated. We look forward to seeing many of you at the AGA Financial Forum that’s coming up. Goodbye.

Operator: Thank you. This concludes Chesapeake Utilities Corporation’s First Quarter 2024 Earnings Conference Call. Please disconnect your line at this time, and have a wonderful day.