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DOVER - Chesapeake Utilities Corporation (NYSE:CPK), a $2.84 billion market cap utility company with impressive revenue growth of 20.34% over the last twelve months, announced Tuesday that its subsidiary, Aspire Energy Express, will construct and operate an intrastate natural gas pipeline in central Ohio to serve a new fuel-cell facility providing power to a data center. According to InvestingPro analysis, the company is currently trading above its Fair Value.
The agreement with American Electric Power (AEP) represents a capital investment of approximately $10 million for Chesapeake Utilities. The new transmission infrastructure is expected to deliver natural gas to power on-site electricity generation at the data center, with completion anticipated in the first half of 2027. With EBITDA of $326 million and a P/E ratio of 22.87, the company maintains a FAIR financial health score according to InvestingPro metrics.
"This project is a clear example of how Chesapeake Utilities Corporation continues to execute on our growth strategy by leveraging our core capabilities," said Jeff Sylvester, senior vice president and chief operating officer of Chesapeake Utilities Corporation, in the press release.
The project comes as demand for distributed data infrastructure continues to rise across the United States, with AEP working to support these developments by providing power solutions to customers with increasing energy requirements.
Aspire Energy Express, founded in 2020, is a wholly owned subsidiary of Chesapeake Utilities that operates as an intrastate pipeline company in Ohio. The parent company, Chesapeake Utilities, operates multiple energy infrastructure subsidiaries that enable the transmission and distribution of natural gas to residential, commercial, and industrial customers.
The announcement represents the latest expansion of natural gas infrastructure by Chesapeake Utilities in Ohio, a state the company describes as having strong workforce availability and abundant resources. The company has maintained dividend payments for 55 consecutive years and raised them for 21 straight years, demonstrating strong financial stability. Discover more insights about CPK and access comprehensive analysis of 1,400+ stocks with a InvestingPro subscription.
In other recent news, Chesapeake Utilities Corporation reported its Q1 2025 earnings, revealing an adjusted earnings per share (EPS) of $2.22, which was slightly below the forecast of $2.32. However, the company surpassed revenue expectations, posting $298.7 million against a forecast of $255.18 million. Chesapeake Utilities reaffirmed its full-year 2025 adjusted EPS guidance of $6.15 to $6.35, despite project delays. The revenue beat was notable, driven by strong natural gas demand and strategic investments in infrastructure and technology. Additionally, the company announced the appointment of Abhijit Bhatwadekar as the new chief information officer, effective June 13, 2025. This appointment aligns with Chesapeake Utilities’ focus on growth and digital transformation. The company continues to see robust growth in natural gas demand across its service areas, contributing to its positive financial performance. Analyst firms like Maxim Group and Siebert Williams Bank have been engaging with the company regarding its strategic initiatives and market outlook.
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