Chesapeake Utilities Corporation (CPK) Cash Flow Statement

The 2026 quarters show CapEx of $125.0M to $152.4M against OCF of $88.1M to $118.0M, which is the expected pattern for a regulated gas utility whose growth engine is Florida and Delaware infrastructure. The sustainability question is not the negative FCF itself but whether the gap is being closed by external capital on reasonable terms, which the supplied data does not fully show. Investors should monitor whether capex intensity moderates as projects enter rate base, since sustained coverage below 100% would increase reliance on debt and equity issuance.

Quarterly debt issuance and stock issuance figures are small relative to the $64.3M to $178.5M FCF deficits in the period, which suggests the funding gap is being bridged by items outside the supplied data, such as short-term borrowings or prior-period cash balances. The 1.02 Debt/Equity ratio conflicts with typical utility capital structures and may indicate a data discrepancy, so it should not be relied upon until reconciled. Analysts should verify the full financing mix before drawing conclusions about access to capital markets.

Coverage averaged roughly four times across the period, which provides a reasonable buffer, though the 2025Q4 reading of 2.2x coincided with an unusually low operating cash flow of $35.4M. Seasonal working capital swings in heating-driven quarters make single-quarter coverage a noisy signal, so trailing four-quarter coverage is the more meaningful test. Dividend safety depends on sustaining OCF through rate-case lag periods that may not be fully captured in the quarterly series.

Net income of $17.5M to $59.3M moved less than OCF, implying that working capital timing and non-cash regulatory accruals are driving much of the quarterly variance. Winter quarters generate the bulk of cash collection, while summer and fall quarters consume it, so the annualized OCF is the appropriate basis for assessing predictability. The lack of disclosed interest paid data beyond roughly $12.9M to $17.5M per quarter limits deeper coverage analysis of fixed obligations.

The divergence between accounting earnings and operating cash flow in both directions points to regulatory assets, deferred fuel recovery, and AFUDC accruals as likely contributors rather than operating changes. Because these constructs defer or accelerate recognition, net income can overstate or understate the cash available to service capex and dividends. Modeling should anchor on OCF and its trailing average rather than reported quarterly earnings.