Chesapeake Utilities (CPK) risk factors, FY2025 10-K

FINANCIAL RISKS

1. 01Our financial results may fluctuate significantly and may not fully reflect the underlying performance of our business
2. 02If we fail to comply with our debt covenant obligations, we could experience adverse financial consequences that could affect our liquidity and ability to borrow funds
3. 03Increases in interest rates may adversely affect our results of operations and cash flows
4. 04Continuing or worsening inflationary and/or supply chain issues may adversely impact our financial condition and results of operations54% rewritten
5. 05impact the availability of items that are necessary to support normal operations as well as materials that are required for continued infrastructure growth, and as a result, may adversely impact our financial condition and results of operationsNew
6. 06Disruptions, uncertainty or volatility in the credit and capital markets may exert downward pressure on the market price of the Company’s common stock
7. 07Fluctuations in propane gas prices could negatively affect results of operations

OPERATIONAL RISKS

1. 08We must construct new facilities to support future growth in earnings in our natural gas and electric distribution and natural gas transmission operations
2. 09We do not own all of the land on which our pipelines and facilities are located, which could result in disruptions to our operations48% rewritten
3. 10Chesapeake Utilities Corporation 2025 Form 10-K Page 16100% rewritten
4. 11We operate in a competitive environment, and we may lose customers to competitors
5. 12Fluctuations in weather may cause a significant variance in our earnings
6. 13Severe weather events (such as a major hurricane, flood, or tornado), natural disasters and acts of terrorism could adversely impact earnings and access to insurance coverage
7. 14Operating events affecting public safety and the reliability of our natural gas and electric distribution and transmission systems could adversely affect our operations and increase our costs
8. 15A security breach disrupting our operating systems, facilities, and workforce or exposing confidential information may adversely affect our reputation, disrupt our operations and increase our costs
9. 16The Company’s business, results of operations, financial condition and cash flows could be adversely affected by interruption of the Company’s information technology or network systems as well as the Company’s implementation of its technology roadmap
10. 17Chesapeake Utilities Corporation 2025 Form 10-K Page 18100% rewritten
11. 18Concerns relating to the responsible use of new and evolving technologies, such as AI, may result in reputational or financial harm and liability
12. 19Failure to attract and retain an appropriately qualified employee workforce could adversely affect operations
13. 20A strike, work stoppage or a labor dispute could adversely affect our operations
14. 21Our businesses are capital-intensive, and the increased costs and/or delays of capital projects may adversely affect our future earnings
15. 22Our regulated energy business may be at risk if franchise agreements are not renewed, or new franchise agreements are not obtained, which could adversely affect our future results or operating cash flows and financial condition
16. 23Slowdowns in customer growth may adversely affect earnings and cash flowsNew
17. 24Energy conservation could lower energy consumption, which would adversely affect our earnings
18. 25Commodity price increases may adversely affect the operating costs and competitive positions of our natural gas, electric and propane operations, which may adversely affect our financial condition, results of operations and cash flows
19. 26Our use of derivative instruments may adversely affect our results of operations24% rewritten
20. 27A substantial disruption or lack of growth in interstate natural gas pipeline transmission and storage capacity or electric transmission capacity may impair our ability to meet customers’ existing and future requirementsNew
21. 28Our ability to grow our businesses could be adversely affected if we are not successful in making acquisitions or integrating the acquisitions we have completed31% rewritten
22. 29An impairment of our assets including long-lived assets, goodwill and other intangible assets, could negatively impact our financial condition and results of operations

REGULATORY, LEGAL AND ENVIRONMENTAL RISKS

1. 30Regulation of our businesses, including changes in the regulatory environment, may adversely affect our financial condition, results of operations and cash flows
2. 31We may face certain regulatory and financial risks related to pipeline safety legislation
3. 32Pipeline integrity programs and repairs may impose significant costs and liabilities on the Company
4. 33We are subject to operating and litigation risks that may not be fully covered by insurance
5. 34Costs of compliance with environmental laws may be significant
6. 35Unanticipated changes in our tax provisions or exposure to additional tax liabilities could affect our profitability and cash flow
7. 36Our business may be subject in the future to additional regulatory and financial risks associated with global warming and climate change
8. 37Climate changes may impact the demand for our services in the future and could result in more frequent and more severe weather events, which ultimately could adversely affect our financial results
9. 38Our certificate of incorporation and bylaws may delay or prevent a transaction that stockholders would view as favorable24% rewritten