On Dec 30, 2015, shares of Chesapeake Utilities Corporation CPK hit a 52-week high of $61.13, finally closing a tad lower at $60.25. The average daily volume over the last three months touched 63,244 shares. The company reported a positive earnings surprise of 17.86% in third-quarter 2015. In fact, the company has beaten earnings estimates in three out of the last four quarters, with an average beat of 10.98%.
Chesapeake Utilities has recorded a year-to-date return of 23.5% thanks to consistent investment in existing operations. The company’s growth investment in its plants increased $147 million since the start of 2015, which will definitely have a positive impact on earnings.
The company’s impressive performance this year can be primarily attributed to management’s ability to identify and develop significant growth opportunities. Investments made by the company over the last eight years have resulted in earnings and dividend growth and will continue to boost its performance going forward.
Chesapeake Utilities’ cumulative capital expenditure in 2015 including acquisitions is likely to be in the range of $182.5 million to $212.5 million. There are significant growth opportunities centered on its gathering systems.
The clean burning nature of natural gas and its increasing usage in the U.S. and particularly in Chesapeake Utilities’ service territories are opening up new windows for growth for this company.
Chesapeake Utilities currently sports a Zacks Rank #1 (Strong Buy). Some of the other favorably ranked stocks in the industry include ONEOK Inc. OKE, Sempra Energy SRE and Atmos Energy Corporation ATO, all three carrying a Zacks Rank #2 (Buy).
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