What changed in this filing

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Item 1. Financial Statements

2025-11-06 compared with 2025-08-07 · 173 added, 155 removed, 806 unchanged (29% of the section changed)

2 unchanged sentences

Condensed Consolidated Statements of Income (Unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

29 unchanged sentences

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

5 unchanged sentences

( 0.4 ) ( 0.6 ) — 1.0

Reclassifications of net (gain) on commodity contract cash flow hedges, net of tax $ 0.0 , $( 0.1 ), $( 0.2 ) and $( 0.4 ), respectively

Reclassifications of net (gain) loss on commodity contract cash flow hedges, net of tax $ 0.0 , $ 0.0 , $( 0.2 ) and $( 0.4 ), respectively

0.1 0.1 ( 0.5 ) ( 0.6 )

Net gain (loss) on interest rate swap cash flow hedges, net of tax of $ 0.0 , $ 0.1 , $( 0.2 ) and $ 0.2 , respectively

Net loss on interest rate swap cash flow hedges, net of tax of $( 0.1 ), $( 0.6 ), $( 0.3 ) and $( 0.4 ), respectively

( 0.1 ) ( 1.8 ) ( 0.8 ) ( 1.3 )

1 unchanged sentence

— ( 0.2 ) ( 0.2 ) ( 0.4 )

Total Other Comprehensive Income (Loss), net of tax ( 0.5 ) 0.2 ( 1.1 ) 1.2

Total Other Comprehensive Loss, net of tax ( 0.4 ) ( 2.5 ) ( 1.5 ) ( 1.3 )

Comprehensive Income $ 19.0 $ 15.0 $ 92.7 $ 80.6

2 unchanged sentences

Condensed Consolidated Balance Sheets (Unaudited)

Assets June 30,

Assets September 30,

2025 December 31,

36 unchanged sentences

Condensed Consolidated Balance Sheets (Unaudited)

Capitalization and Liabilities June 30,

Capitalization and Liabilities September 30,

2025 December 31,

38 unchanged sentences

Condensed Consolidated Statements of Cash Flows (Unaudited)

Six Months Ended

Nine Months Ended

September 30,

(in millions)

7 unchanged sentences

Unrealized gain on investments and commodity contracts ( 1.8 ) ( 1.7 )

Employee benefits and compensation — ( 0.1 )

Share-based compensation 6.0 6.4

Other, net — ( 0.2 )

Changes in assets and liabilities:

22 unchanged sentences

Net borrowings (repayments) under line of credit agreements ( 103.5 ) 32.9

Proceeds from issuance of long-term debt 199.1 ( 0.1 )

Repayment of long-term debt and finance lease obligation ( 14.5 ) ( 14.5 )

Net cash provided by (used in) financing activities 67.1 ( 10.1 )

Net Increase (Decrease) in Cash and Cash Equivalents ( 6.4 ) 1.5

Net cash provided by financing activities 113.8 35.0

Net Decrease in Cash and Cash Equivalents ( 6.1 ) ( 3.3 )

Cash and Cash Equivalents—Beginning of Period 7.9 4.9

9 unchanged sentences

Other Comprehensive

Income (Loss) Deferred

Loss Deferred

Compensation Treasury

Balance at March 31, 2024 22,267 $ 10.8 $ 750.2 $ 521.7 $ ( 1.8 ) $ 9.6 $ ( 9.6 ) $ 1,280.9

Balance at June 30, 2024 22,299 $ 10.9 $ 755.8 $ 525.5 $ ( 1.6 ) $ 9.7 $ ( 9.7 ) $ 1,290.6

Net income — — — 17.5 — — — 17.5

Other comprehensive income — — — — 0.2 — — 0.2

Other comprehensive loss — — — — ( 2.5 ) — — ( 2.5 )

Dividend declared ($ 0.640 per share)

5 unchanged sentences

Treasury stock activities — — — — — 0.1 ( 0.1 ) —

Balance at June 30, 2024 22,299 $ 10.9 $ 755.8 $ 525.5 $ ( 1.6 ) $ 9.7 $ ( 9.7 ) $ 1,290.6

Balance at September 30, 2024 22,773 $ 11.1 $ 812.9 $ 528.4 $ ( 4.1 ) $ 9.8 $ ( 9.8 ) $ 1,348.3

Balance at December 31, 2023 22,235 $ 10.8 $ 749.4 $ 488.7 $ ( 2.8 ) $ 9.1 $ ( 9.1 ) $ 1,246.1

Net income — — — 81.9 — — — 81.9

Other comprehensive income — — — — 1.2 — — 1.2

Other comprehensive loss — — — — ( 1.3 ) — — ( 1.3 )

Dividends declared ($ 1.870 per share)

6 unchanged sentences

— — — — — 0.7 ( 0.7 ) —

Balance at September 30, 2024 22,773 $ 11.1 $ 812.9 $ 528.4 $ ( 4.1 ) $ 9.8 $ ( 9.8 ) $ 1,348.3

Balance at June 30, 2025 23,420 $ 11.4 $ 896.4 $ 594.1 $ ( 2.8 ) $ 12.5 $ ( 12.5 ) $ 1,499.1

Balance at March 31, 2025 23,089 $ 11.2 $ 852.0 $ 586.4 $ ( 2.3 ) $ 12.2 $ ( 12.2 ) $ 1,447.3

Net income — — — 19.4 — — — 19.4

Other comprehensive income — — — — ( 0.5 ) — — ( 0.5 )

Other comprehensive loss — — — — ( 0.4 ) — — ( 0.4 )

Dividend declared ($ 0.685 per share)

4 unchanged sentences

1 — 1.7 — — — — 1.7

Treasury stock activities — — — — — 0.3 ( 0.3 ) —

Balance at June 30, 2025 23,420 $ 11.4 $ 896.4 $ 594.1 $ ( 2.8 ) $ 12.5 $ ( 12.5 ) $ 1,499.1

Balance at September 30, 2025 23,546 $ 11.5 $ 913.2 $ 597.2 $ ( 3.2 ) $ 12.5 $ ( 12.5 ) $ 1,518.7

Balance at December 31, 2024 22,899 $ 11.1 $ 830.5 $ 550.3 $ ( 1.7 ) $ 9.8 $ ( 9.8 ) $ 1,390.2

Net income — — — 94.2 — — — 94.2

Other comprehensive income — — — — ( 1.1 ) — — ( 1.1 )

Other comprehensive loss — — — — ( 1.5 ) — — ( 1.5 )

Dividends declared ($ 2.010 per share)

6 unchanged sentences

— — — — — 2.7 ( 2.7 ) —

Balance at June 30, 2025 23,420 $ 11.4 $ 896.4 $ 594.1 $ ( 2.8 ) $ 12.5 $ ( 12.5 ) $ 1,499.1

Balance at September 30, 2025 23,546 $ 11.5 $ 913.2 $ 597.2 $ ( 3.2 ) $ 12.5 $ ( 12.5 ) $ 1,518.7

(1) 2.0 million shares of preferred stock at $ 0.01 par value have been authorized.

1 unchanged sentence

accordingly, no information has been included in the Condensed Consolidated Statements of Stockholders’ Equity.

(2) Includes 127 thousand, 114 thousand, 113 thousand, and 108 thousand shares at June 30, 2025, December 31, 2024, June 30, 2024 and December 31, 2023, respectively, held in a Rabbi Trust related to our Non-Qualified Deferred Compensation Plan.

(2) Includes 128 thousand, 114 thousand, 113 thousand, and 108 thousand shares at September 30, 2025, December 31, 2024, September 30, 2024 and December 31, 2023, respectively, held in a Rabbi Trust related to our Non-Qualified Deferred Compensation Plan.

(3) Includes shares issued under the Retirement Savings Plan, DRIP and/or ATM program, as applicable.

1 unchanged sentence

(5) The shares issued under the SICP are net of shares withheld for employee taxes.

For the six months ended June 30, 2025 and 2024, we withheld 8 thousand and 14 thousand shares, respectively, for employee taxes.

For the nine months ended September 30, 2025 and 2024, we withheld 8 thousand and 14 thousand shares, respectively, for employee taxes.

The accompanying notes are an integral part of these condensed consolidated financial statements.

17 unchanged sentences

ASU 2023-09 became effective for our annual financial statements beginning January 1, 2025.

ASU 2023-09 only impacts disclosures, and as a result, will not have a material impact on our financial position or results of operations.

ASU 2023-09 only impacts disclosures, and as a result, will not have an impact on our financial position or results of operations.

Recent Accounting Standards Yet to be Adopted

2 unchanged sentences

ASU 2024-04 only impacts disclosures, and as a result, will not have an impact on our financial position or results of operations.

Internal-Use Software (ASC 350) - In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software.

This update, among other changes, eliminates the project stages used in the historical guidance and instead, focuses on a principles-based approach that utilizes management's commitment to the project and the probability of project completion.

ASU 2025-06 will be effective for our interim and annual financial statements beginning January 1, 2028.

We do not expect ASU 2025-06 to have a material impact on our financial position or results of operation.

Climate-Related Disclosures - In March 2024, the SEC issued a final rule that requires a public entity to provide disclosures surrounding material Scope 1 and Scope 2 emissions, climate-related risks and the material impact of those risks, and material climate targets and goals.

5 unchanged sentences

1 (referred to as the "One Big Beautiful Bill Act") was signed into law.

The comprehensive legislative package contains, amongst other topics, significant tax law changes and regulatory compliance updates, with various effective dates including certain provisions with effective dates tied to the date of enactment.

While the provisions of the Act did not impact our financial position, results of operations, or cash flows as of June 30, 2025, we are currently evaluating any such impacts on a go-forward basis.

The comprehensive legislative package contains, among other topics, significant tax law changes and regulatory compliance updates, with various effective dates, including provisions related to limitations of interest expense deductions and the reinstatement of bonus depreciation for qualified property.

These provisions of the One Big Beautiful Bill Act have had a positive impact on our income tax provision beginning in the third quarter of 2025, and we continue to evaluate the anticipated impacts to our financial position, results of operations, and/or cash flows on a go-forward basis.

Calculation of Earnings Per Share

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

10 unchanged sentences

Diluted Earnings Per Share $ 0.82 $ 0.78 $ 4.03 $ 3.66

There were no acquisitions completed during 2024 or during the six months ended June 30, 2025.

The Company’s consolidated results include certain transaction and transition-related expenses for the three and six months ended June 30, 2025 and 2024 related to the integration of the FCG acquisition which was completed in November 2023.

Refer to our Annual Report on Form 10-K for the year ended December 31, 2024 for additional details on the FCG acquisition as well as previous acquisitions.

There were no acquisitions completed during 2024 or during the nine months ended September 30, 2025.

The Company’s consolidated results include certain transaction and transition-related expenses for the three and nine months ended September 30, 2025 and 2024 related to the integration of the FCG acquisition which was completed in November 2023.

Refer to our Annual Report on Form 10-K for the year ended December 31, 2024 for additional details on the FCG acquisition.

Revenue Recognition

2 unchanged sentences

Typically, our customers pay for the goods and/or services we provide in the month following the satisfaction of our performance obligation.

The following tables display our revenue by major source based on product and service type for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, 2025 Three Months Ended June 30, 2024

The following tables display our revenue by major source based on product and service type for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, 2025 Three Months Ended September 30, 2024

(in millions) Regulated Energy Unregulated Energy Other Businesses and Eliminations Total Regulated Energy Unregulated Energy Other Businesses and Eliminations Total

Energy distribution

Delaware natural gas division $ 15.5 $ — $ — $ 15.5 $ 13.4 $ — $ — $ 13.4

Delaware natural gas $ 10.9 $ — $ — $ 10.9 $ 9.5 $ — $ — $ 9.5

Florida natural gas distribution

2 unchanged sentences

FPU electric distribution 30.7 — — 30.7 29.9 — — 29.9

Maryland natural gas division (1)

Maryland natural gas (1)

8.6 — — 8.6 8.3 — — 8.3

19 unchanged sentences

(1) In accordance with the Maryland PSC approval of our natural gas base rate proceeding, effective April 2025, our natural gas distribution businesses in Maryland (Maryland natural gas division, Sandpiper Energy and Elkton Gas) are now consolidated for rate-making and other purposes and are reflected on a consolidated basis for all periods presented consistent with the final rate order.

(2) Total operating revenues for the three months ended June 30, 2025 include other revenue (revenues from sources other than contracts with customers) of $ 1.0 million and $ 0.1 million for our Regulated Energy and Unregulated Energy segments, respectively, and $ 0.1 million for both our Regulated Energy and Unregulated Energy segments for the three months ended June 30, 2024.

The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for the Maryland division and Sandpiper Energy and late fees .

Six Months Ended June 30, 2025 Six Months Ended June 30, 2024

See Note 5, Rates and Other Regulatory Activities , for additional information.

(2) Total operating revenues for the three months ended September 30, 2025 include other revenue (revenues from sources other than contracts with customers) of $ 0.1 million and $ 0.1 million for our Regulated Energy and Unregulated Energy segments, respectively, and $ 0.2 million and $ 0.1 million for our Regulated Energy and Unregulated Energy segments for the three months ended September 30, 2024.

The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for the Maryland natural gas operations and late fees .

Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024

(in millions) Regulated Energy Unregulated Energy Other Businesses and Eliminations Total Regulated Energy Unregulated Energy Other Businesses and Eliminations Total

Energy distribution

Delaware natural gas division $ 57.8 $ — $ — $ 57.8 $ 45.3 $ — $ — $ 45.3

Delaware natural gas $ 68.7 $ — $ — $ 68.7 $ 54.8 $ — $ — $ 54.8

Florida natural gas distribution

2 unchanged sentences

FPU electric distribution 80.1 — — 80.1 72.4 — — 72.4

Maryland natural gas division (1)

Maryland natural gas (1)

44.6 — — 44.6 38.0 — — 38.0

19 unchanged sentences

( 2) Total operating revenues for the six months ended June 30, 2025 include other revenue (revenues from sources other than contracts with customers) of $ 0.5 million and $ 0.2 million for our Regulated Energy and Unregulated Energy segments, respectively, and $ 0.7 million and $ 0.2 million for our Regulated Energy and Unregulated Energy segments, respectively, for the six months ended June 30, 2024.

The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for the Maryland division and Sandpiper Energy and late fees.

See Note 5, Rates and Other Regulatory Activities , for additional information.

( 2) Total operating revenues for the nine months ended September 30, 2025 include other revenue (revenues from sources other than contracts with customers) of $ 0.6 million and $ 0.3 million for our Regulated Energy and Unregulated Energy segments, respectively, and $ 0.9 million and $ 0.3 million for our Regulated Energy and Unregulated Energy segments, respectively, for the nine months ended September 30, 2024.

The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for the Maryland natural gas operations and late fees.

Contract Balances

The timing of revenue recognition, customer billings and cash collections results in trade receivables and customer advances (contract liabilities) in our condensed consolidated balance sheets.

The balances of our trade receivables, contract assets, and contract liabilities as of December 31, 2024 and June 30, 2025 were as follows:

The balances of our trade receivables, contract assets, and contract liabilities as of December 31, 2024 and September 30, 2025 were as follows:

Trade Receivables Contract Assets (Current) Contract Assets (Non-current) Contract Liabilities (Current)

9 unchanged sentences

Our performance obligation is satisfied over the term of the respective customer retail program on a ratable basis.

For the three and six months ended June 30, 2025 and 2024, the amounts recognized in revenue were not material.

For the three and nine months ended September 30, 2025 and 2024, the amounts recognized in revenue were not material.

Remaining Performance Obligations

Certain of our businesses have long-term fixed fee contracts with customers in which revenues are recognized when performance obligations are satisfied over the contract term.

Revenue for these businesses for the remaining performance obligations, at June 30, 2025, are expected to be recognized as follows:

Revenue for these businesses for the remaining performance obligations, at September 30, 2025, are expected to be recognized as follows:

(in millions) 2025 2026 2027 2028 2029 2030 2031 and thereafter

15 unchanged sentences

Rates set to recover the approved components of the increase were effective in March 2025.

Phase II of the rate case which will address tariff-related changes including rate design began in July 2025.

In October 2025, a settlement among the Company, PSC staff and the Delaware Division of the Public Advocate was reached for Phase II of the rate case addressing tariff-related changes including rate design and approved by the Delaware Public Service Commission with rates effective as of October 15, 2025.

Maryland Natural Gas Rate Case:

8 unchanged sentences

The hearing was held in March 2025, during which Phase II was approved, including an additional $ 0.9 million in revenue requirement for a total cumulative increase of $ 3.5 million.

A final order was issued in April 2025 and included approval of the consolidation of the operations and the assets of CUC-Maryland Division, Sandpiper Energy, and Elkton Gas into one entity, which was renamed and will operate as Chesapeake Utilities of Maryland, Inc.

Maryland Natural Gas Depreciation Study:

21 unchanged sentences

At December 31, 2024, the RSAM reserve had been completely utilized.

FCG Depreciation Study:

In February 2025, FCG filed a depreciation study with the Florida PSC.

2 unchanged sentences

The Florida OPC filed a motion to hold this filing in abeyance, which was denied in April 2025.

The OPC has since filed motions to reconsider and dismiss the docket, which will be considered by Florida PSC in September 2025.

The OPC has since filed motions to reconsider and dismiss the docket, which were denied by the Florida PSC in September 2025.

At this time, the docket is set for hearing in December 2025.

Storm Protection Plan:

17 unchanged sentences

Specifically, the requested modifications will enable FCG to accelerate remediation related to problematic pipe and facilities consisting of obsolete and exposed pipe.

These efforts will serve to improve the safety and reliability of service to FCG's customers and the modifications will result in an estimated additional $ 50.0 million in capital expenditures associated with the SAFE Program, which would increase the total projected capital expenditures to approximately $ 255.0 million over a 10-year period.

These efforts will serve to improve the safety and reliability of service to FCG's customers and the modifications will result in an estimated additional $ 50.0 million in capital

expenditures associated with the SAFE Program, which would increase the total projected capital expenditures to approximately $ 255.0 million over a 10-year period.

The Florida PSC approved the modifications in September 2024.

5 unchanged sentences

The Florida PSC approved it in April 2024.

Conversions of the community gas systems commenced in the second quarter of 2024 and are projected to be complete in the third quarter of 2025.

Conversions of the community gas systems commenced in the second quarter of 2024 and are projected to be complete in the fourth quarter of 2025.

East Coast Reinforcement Projects:

In December 2023, Peninsula Pipeline filed a petition with the Florida PSC for approval of its Transportation Service Agreements with FPU for projects that will support additional supply to communities on the East Coast of Florida.

The projects are driven by the need for increased supply to coastal portions of the state that are experiencing significant population growth.

Peninsula Pipeline will construct several pipeline extensions which will support FPU’s distribution system in the areas of Boynton Beach and New Smyrna Beach with an additional 15,000 Dts/d and 3,400 Dts/d, respectively.

In December 2023, Peninsula Pipeline filed a petition with the Florida PSC for approval of its Transportation Service Agreements with FPU for projects that will provide additional supply to coastal communities on the East Coast of Florida, which are experiencing significant population growth.

Peninsula Pipeline proposed several pipeline extensions to support FPU’s distribution system in the areas of Boynton Beach and New Smyrna Beach with an additional 15,000 Dts/d and 3,400 Dts/d, respectively.

The Florida PSC approved the projects in March 2024.

1 unchanged sentence

Central Florida Reinforcement Projects :

In February 2024, Peninsula Pipeline filed a petition with the Florida PSC for approval of its Transportation Service Agreements with FPU for projects that will support additional supply to communities located in Central Florida.

The projects are driven by the need for increased supply to communities in central Florida that are experiencing significant population growth.

Peninsula Pipeline will construct several pipeline extensions which will support FPU's distribution system around the Plant City and Lake Mattie areas of Florida with an additional 5,000 Dts/d and 8,700 Dts/d, respectively.

Peninsula Pipeline proposed to construct several pipeline extensions which will support FPU's distribution system around the Plant City and Lake Mattie areas of Florida with an additional 5,000 Dts/d and 8,700 Dts/d, respectively.

The Florida PSC approved the projects in May 2024.

6 unchanged sentences

The Florida PSC approved the petition at its July 2024 meeting with the projects estimated to be completed in the first half of 2026.

In October 2025, the Florida PSC approved amendments to the Transportation Service Agreements that were filed to include Peninsula Pipeline as a party to the related interconnection agreements.

Cloud Project Amendment :

12 unchanged sentences

In September 2024, Peninsula Pipeline filed a petition with the Florida PSC for approval of the Transportation Service Agreement with FCG for a series of projects that will enhance the infrastructure in Miami-Dade County.

The proposed expansion consists of the development of several pipeline projects to support growth and support FCG's distribution system in the area and also enhance FCG's ability to obtain gas from various access points in the Miami-Dade county area.

The expansion was approved in February 2025 and the projects are expected to be in service in the third quarter of 2025.

The proposed expansion consists of the development of several pipeline projects to support growth and FCG's distribution system in the area, as well as enhance FCG's access to gas from various points in the

Miami-Dade County area.

The expansion was approved in February 2025 and interim services began in August 2025 with permanent facilities expected to be in service by the second quarter of 2026.

FPU Electric Rate Case :

In August 2024, our Florida Electric division filed a petition with the Florida PSC seeking a general base rate increase of $ 12.6 million with a ROE of 11.3 percent based on a 2025 projected test year.

interim rates of approximately $ 1.8 million were approved with an effective date of November 1, 2024.

Annualized interim rates of approximately $ 1.8 million were approved with an effective date of November 1, 2024.

In March 2025, the Florida PSC approved the permanent rate increase, but the order was subsequently protested.

6 unchanged sentences

The project will provide long-term incremental supply necessary to support the growing demand of the participating shippers.

In January 2025, the FERC approved the project, and construction is expected to be complete in the second quarter of 2026.

In June 2025, Eastern Shore filed a limited amended application with the FERC requesting that it issue an order authorizing revised initial transportation rates for the project.

The revised rates were requested to address increased capital costs being incurred related to unanticipated changes in global markets and supply chains.

In January 2025, the FERC approved the project.

Construction has commenced and the project is expected to be placed into service in mid-2026 dependent on final FERC approval.

In June 2025, Eastern Shore filed a limited amended application with the FERC requesting revised initial transportation rates for the project.

The revised rates reflected increased capital costs associated with unanticipated changes in global markets and supply chains, including the availability of skilled laborers with the requisite certifications to work on this project.

Eastern Shore requested expedited action by the FERC in relation to this matter and an approved order was issued in July 2025.

14 unchanged sentences

In connection with the TCJA, which was signed into law in December 2017, customer rates for our regulated businesses were adjusted as approved by the regulators.

Regulatory liabilities related to accumulated deferred income taxes (“ADIT”) associated with the TCJA amounted to $ 84.0 million and $ 84.6 million at June 30, 2025 and December 31, 2024, respectively.

Regulatory liabilities related to accumulated deferred income taxes (“ADIT”) associated with the TCJA amounted to $ 83.7 million and $ 84.6 million at September 30, 2025 and December 31, 2024, respectively.

With the exception of the ADIT balance of $ 34.2 million attributable to Eastern Shore, such amounts are being amortized in accordance with approvals received from the Delaware, Maryland, and Florida PSCs in 2018 and 2019.

7 unchanged sentences

and Winter Haven, Key West, Pensacola, Sanford and West Palm Beach, Florida.

As of June 30, 2025 and December 31, 2024, we had approximately $ 3.1 million and $ 3.2 million, respectively, in environmental liabilities related to the former MGP sites, and related regulatory assets of approximately $ 0.3 million and $ 0.3 million at the respective balance sheet dates for future recovery of environmental costs from customers.

As of September 30, 2025 and December 31, 2024, we had approximately $ 3.1 million and $ 3.2 million, respectively, in environmental liabilities related to the former MGP sites, and related regulatory assets of approximately $ 0.3 million and $ 0.3 million at the respective balance sheet dates for future recovery of environmental costs from customers.

Environmental liabilities for our MGP sites are recorded on an undiscounted basis based on the estimate of future costs provided by independent consultants.

5 unchanged sentences

The remedial actions approved by the Florida Department of Environmental Protection have been implemented on the east parcel of our West Palm Beach, Florida, site.

Similar remedial actions have been initiated on the site's west parcel, and construction of the systems required to remediate the site are now complete with remediation activities ongoing as of June 30, 2025.

Remaining remedial costs for West Palm Beach, including completion of the construction for the system start-up on the west parcel, and continued operation and maintenance, are estimated to take between five and fifteen years of operation, maintenance and monitoring, and final site work for closeout of the property is estimated to be between $ 2.8 million and $ 5.2 million.

Remaining remedial costs for West Palm Beach, including completion of the construction for the system start-up on the west parcel, and continued operation and maintenance, are estimated to take between five and fifteen years of operation, maintenance and monitoring, and final site work for close out of the property is estimated to be bet ween $ 2.5 million and $ 5.2 million.

Other Commitments and Contingencies

12 unchanged sentences

If FPU fails to meet this standard, it must provide an Adequate Assurance of Performance which can include an irrevocable letter of credit, a prepayment, a security interest in an asset or a performance bond or guaranty.

As of June 30, 2025, FPU was in compliance with all of the requirements of its supply contracts.

As of September 30, 2025, FPU was in compliance with all of the requirements of its supply contracts.

Eight Flags provides electricity and steam generation services through its CHP plant located on Amelia Island, Florida.

In June 2016, Eight Flags began selling power generated from the CHP plant to FPU pursuant to a 20 -year power purchase agreement for distribution to our electric customers.

In June 2016, Eight Flags began selling power generated from the CHP plant to FPU pursuant to a 20 -year power

purchase agreement for distribution to our electric customers.

In July 2016, Eight Flags also started selling steam, pursuant to a separate 20 -year contract, to the landowner on which the CHP plant is located.

1 unchanged sentence

Corporate Guarantees

The Board of Directors has authorized us to issue corporate guarantees securing obligations of our subsidiaries and to obtain letters of credit securing our subsidiaries' obligations.

The maximum authorized liability under such guarantees

and letters of credit as of June 30, 2025 was $ 40.0 million.

The aggregate amount guaranteed related to our subsidiaries at June 30, 2025 was $ 30.7 million with the guarantees expiring on various dates through June 2026.

In addition, the Board has authorized us to issue specific purpose corporate guarantees.

The amount of specific purpose guarantees outstanding at June 30, 2025 was $ 5.2 million.

As of June 30, 2025, we have issued letters of credit totaling $ 7.6 million related to various transportation, transmission, capacity and storage agreements as well as our primary insurance carriers.

The BOD has authorized us to issue corporate guarantees securing obligations of our subsidiaries and to obtain letters of credit securing our subsidiaries' obligations.

The maximum authorized liability under such guarantees and letters of credit as of September 30, 2025 was $ 40.0 million.

The aggregate amount guaranteed related to our subsidiaries at September 30, 2025 was $ 30.4 million with the guarantees expiring on various dates through September 2026.

In addition, the BOD has authorized us to issue specific purpose corporate guarantees.

The amount of specific purpose guarantees outstanding at September 30, 2025 was $ 4.0 million.

As of September 30, 2025, we have issued letters of credit totaling $ 4.3 million related to various transportation, transmission, capacity and storage agreements as well as our primary insurance carriers.

These letters of credit have various expiration dates through April 2026 and to date, none have been used.

13 unchanged sentences

The following table presents information about our reportable segments:

Three Months Ended June 30,

Three Months Ended September 30,

(in millions) Regulated Unregulated Other Businesses and Eliminations (1)

21 unchanged sentences

Unregulated - Other taxes .

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions) Regulated Unregulated Other Businesses and Eliminations (1)

21 unchanged sentences

Unregulated - Other taxes.

(in millions) June 30, 2025 December 31, 2024

(in millions) September 30, 2025 December 31, 2024

Identifiable Assets

9 unchanged sentences

This current ATM program is active through November 2027.

For the six months ended June 30, 2025 and 2024, we received net proceeds of $ 61.2 million and $ 2.5 million, respectively, associated with shares issued under the direct stock purchase and waiver components of the DRIP as well as shares issued under our ATM program.

For the nine months ended September 30, 2025 and 2024, we received net proceeds of $ 76.3 million and $ 56.8 million, respectively, associated with shares issued under the DRIP as well as shares issued under our ATM program.

Accumulated Other Comprehensive Loss

Defined benefit pension and postretirement plan items, unrealized gains (losses) of our propane swap agreements designated as commodity contract cash flow hedges, and the unrealized gains (losses) of our interest rate swap agreements designated as cash flow hedges are the components of our accumulated other comprehensive loss.

The following tables present the changes in the balances of accumulated other comprehensive loss components for the six months ended June 30, 2025 and 2024.

The following tables present the changes in the balances of accumulated other comprehensive loss components for the nine months ended September 30, 2025 and 2024.

All amounts in the following tables are presented net of tax.

5 unchanged sentences

As of December 31, 2024 $ ( 2.1 ) $ 0.4 $ — $ ( 1.7 )

Other comprehensive income (loss) before reclassifications — 0.4 ( 0.7 ) ( 0.3 )

Other comprehensive loss before reclassifications — — ( 0.8 ) ( 0.8 )

Amounts reclassified from accumulated other comprehensive loss — ( 0.5 ) ( 0.2 ) ( 0.7 )

Net current-period other comprehensive income (loss) — ( 0.2 ) ( 0.9 ) ( 1.1 )

As of June 30, 2025 $ ( 2.1 ) $ 0.2 $ ( 0.9 ) $ ( 2.8 )

Net current-period other comprehensive loss — ( 0.5 ) ( 1.0 ) ( 1.5 )

As of September 30, 2025 $ ( 2.1 ) $ ( 0.1 ) $ ( 1.0 ) $ ( 3.2 )

As of December 31, 2023 $ ( 2.6 ) $ ( 0.3 ) $ 0.1 $ ( 2.8 )

Other comprehensive income before reclassifications — 1.6 0.5 2.1

Other comprehensive income (loss) before reclassifications — 1.0 ( 1.3 ) ( 0.3 )

Amounts reclassified from accumulated other comprehensive loss — ( 0.6 ) ( 0.4 ) ( 1.0 )

Net prior-period other comprehensive income (loss) — 0.4 ( 1.7 ) ( 1.3 )

As of June 30, 2024 $ ( 2.6 ) $ 0.6 $ 0.4 $ ( 1.6 )

As of September 30, 2024 $ ( 2.6 ) $ 0.1 $ ( 1.6 ) $ ( 4.1 )

Deferred gains or losses for our commodity contract and interest rate swap cash flow hedges are recognized in earnings upon settlement and are included in the effects of gains and losses from derivative instruments.

See Note 12, Derivative Instruments , for additional details.

Derivative Instruments , for additional details.

Amortization of the net loss related to the defined benefit pension plan and postretirement plans is included in the computation of net periodic cost (benefit).

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Employee Benefit Plans

Net periodic cost (benefit) for the FPU Pension Plan for the three and six months ended June 30, 2025 and 2024 is set forth in the following table:

Three Months Ended Six Months Ended

June 30, June 30,

Net periodic cost (benefit) for the FPU Pension Plan for the three and nine months ended September 30, 2025 and 2024 is set forth in the following table:

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

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Amortization of net loss 0.1 0.1 0.1 0.2

Total periodic benefit $ ( 0.1 ) $ — $ ( 0.2 ) $ ( 0.1 )

Net periodic costs for our other pension and postretirement benefit plans were not material for the three and six months ended June 30, 2025 and 2024.

In addition, total amounts reclassified from accumulated other comprehensive income (loss) and regulatory assets related to all pension and postretirement benefit plans were not material during the three and six months ended June 30, 2025 and 2024.

Total net periodic benefit $ — $ ( 0.1 ) $ ( 0.2 ) $ ( 0.2 )

Net periodic costs for our other pension and postretirement benefit plans were not material for the three and nine months ended September 30, 2025 and 2024.

The components of our net periodic costs (benefits) have been recorded or reclassified to other expense, net in the condensed consolidated statements of income.

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The portion of the unrecognized pension and postretirement benefit costs related to FPU’s unregulated operations and Chesapeake Utilities' operations is recorded to accumulated other comprehensive income (loss).

During the three and six months ended June 30, 2025, there were no contributions to the FPU Pension Plan and we do not expect to contribute to the FPU Pension Plan during 2025.

During the three and nine months ended September 30, 2025, there were no contributions to the FPU Pension Plan and we do not expect to contribute to the FPU Pension Plan during 2025.

The Chesapeake SERP, the Chesapeake Postretirement Plan and the FPU Medical Plan are unfunded and are expected to be paid out of our general funds.

Cash benefits paid under these other postretirement benefit plans for the three and six months ended June 30, 2025 were not material.

Cash benefits paid under these other postretirement benefit plans for the three and nine months ended September 30, 2025 were not material.

We expect to pay total cash benefits of approximately $ 0.3 million for these other postretirement benefit plans in 2025.

Non-Qualified Deferred Compensation Plan

Members of our Board of Directors and officers of the Company are eligible to participate in the Non-Qualified Deferred Compensation Plan.

Members of our BOD and officers of the Company are eligible to participate in the Non-Qualified Deferred Compensation Plan.

Directors can elect to defer any portion of their cash or stock compensation and officers can defer up to 80 percent of their base compensation, cash bonuses or any amount of their stock bonuses (net of required withholdings).

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The participants are credited with gains or losses on those investments.

Assets held in the Rabbi Trust, recorded as Investments on the condensed consolidated balance sheets, had a fair value of $ 15.9 million and $ 14.4 million at June 30, 2025 and December 31, 2024, respectively.

Assets held in the Rabbi Trust, recorded as Investments on the condensed consolidated balance sheets, had a fair value of $ 16.8 million and $ 14.4 million at September 30, 2025 and December 31, 2024, respectively.

The assets of the Rabbi Trust are at all times subject to the claims of our general creditors.

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Our key employees and non-employee directors have been granted share-based awards through our SICP, which has awards outstanding under the current 2023 plan and the previous 2013 plan.

We record these share-based awards as compensation costs over the respective service period for which services are received in exchange for an award of equity or equity-based compensation.

We record these share-based awards as

compensation costs over the respective service period for which services are received in exchange for an award of equity or equity-based compensation.

The compensation cost is based primarily on the fair value of the shares awarded, using the estimated fair value of each share on the date it was granted, and the number of shares to be issued at the end of the service period.

The table below presents the amounts included in net income related to share-based compensation expense for the three and six months ended June 30, 2025 and 2024:

Three Months Ended Six Months Ended

June 30, June 30,

The table below presents the amounts included in net income related to share-based compensation expense for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

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For the market-based conditions, we used the Monte Carlo valuation to estimate the fair value of each share granted.

The table below presents the summary of the stock activity for awards to key employees for the six months ended June 30, 2025:

The table below presents the summary of the stock activity for awards to key employees for the nine months ended September 30, 2025:

(in thousands, except per share data) Number of Shares Weighted Average

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Expired ( 26 ) $ 113.34

Outstanding—June 30, 2025 289 $ 115.69

During the six months ended June 30, 2025, we granted awards of 99 thousand shares of common stock to officers and key employees under the SICP, including awards granted in February 2025.

Outstanding—September 30, 2025 289 $ 115.63

During the nine months ended September 30, 2025, we granted awards of 99 thousand shares of common stock to officers and key employees under the SICP, including awards granted in February 2025.

The shares granted are multi-year awards that will vest no later than the three-year service period ending December 31, 2027.

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Total combined payments for the employees’ tax obligations to the taxing authorities were approximately $ 1.0 million.

At June 30, 2025, the aggregate intrinsic value of the SICP awards granted to key employees was approximately $ 34.8 million.

At June 30, 2025, there was approximately $ 11.8 million of unrecognized compensation cost related to these awards, which will be recognized through 2027.

At September 30, 2025, the aggregate intrinsic value of the SICP awards granted to key employees was approximately $ 39.0 million.

At September 30, 2025, there was approximately $ 7.7 million of unrecognized compensation cost related to these awards, which will be recognized through 2027.

Non-employee Directors

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We record a deferred expense equal to the fair value of the shares issued and amortize the expense equally over a service period of one year or less.

Our directors receive an annual retainer of shares of common stock under the SICP for services rendered through the subsequent Annual Meeting of Shareholders.

Accordingly, our directors that served on the Board as of May 2025 each received approximately 1 thousand shares of common stock, respectively, with a weighted average fair value of $ 134.05 per share.

At June 30, 2025, there was $ 0.8 million of unrecognized compensation expense related to shares granted to non-employee directors.

Our directors receive an annual retainer of shares of common stock under the SICP for services rendered through the subsequent Annual Meeting of Stockholders.

Accordingly, our directors that served on the BOD as of May 2025 each received approximately 1 thousand shares of common stock, respectively, with a weighted average fair value of $ 134.05 per share.

At September 30, 2025, there was $ 0.6 million of unrecognized compensation expense related to shares granted to non-employee directors.

This expense will be recognized over the remaining service period ending in May 2026.

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Occasionally, we may enter into interest rate swap agreements to mitigate risk associated with changes in short-term borrowing rates.

As of June 30, 2025, our natural gas and electric distribution operations did not have any outstanding derivative contracts.

As of September 30, 2025, our natural gas and electric distribution operations did not have any outstanding derivative contracts.

Volume of Derivative Activity

As of June 30, 2025, the volume of our commodity derivative contracts were as follows:

As of September 30, 2025, the volume of our commodity derivative contracts were as follows:

Business unit Commodity Contract Type Quantity hedged (in millions) Designation Longest Expiration date of hedge

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Sharp entered into futures and swap agreements to mitigate the risk of fluctuations in wholesale propane index prices associated with the propane volumes that are expected to be purchased and/or sold during the heating season.

Under the futures and swap agreements, Sharp will receive the difference between (i) the index prices (Mont Belvieu prices in July 2025 through June 2028) and (ii) the per gallon propane swap prices, to the extent the index prices exceed the contracted prices.

Under the futures and swap agreements, Sharp will receive the difference between (i) the index prices (Mont Belvieu prices in October 2025 through June 2028) and (ii) the per gallon propane swap prices, to the extent the index prices exceed the contracted prices.

If the index prices are lower than the contract prices, Sharp will pay the difference.

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The change in the fair value of the swap agreements is recorded as unrealized gain (loss) in other comprehensive income (loss) and later recognized in the statement of income in the same period and in the same line item as the hedged transaction.

The amount of unrealized gains that we expect to reclassify from accumulated other comprehensive income (loss) related to our commodity cash flow hedges to earnings during the 12 -month period ended June 30, 2026 is $ 0.1 million.

The amount of unrealized loss that we expect to reclassify from accumulated other comprehensive income (loss) related to our commodity cash flow hedges to earnings during the 12 -month period ended September 30, 2026 is $ 0.2 million.

Interest Rate Swap Activities

We manage interest rate risk by entering into derivative contracts to hedge the variability in cash flows attributable to changes in the short-term borrowing rates.

In September 2022, we entered into an interest rate swap with a notional amount of $ 50.0 million through September 2025, with pricing of 3.98 percent.

In August 2024, we entered into an

additional interest rate swap through August 2029, at a notional amount of $ 50.0 million and pricing of 3.97 percent.

In September 2022, we entered into a three-year interest rate swap with a notional amount of $ 50.0 million at pricing of 3.98 percent.

As of September 30, 2025, this swap had expired.

In August 2024, we entered into an additional interest rate swap through August 2029, at a notional amount of $ 50.0 million and pricing of 3.97 percent.

Our interest rate swaps are cash settled monthly as the counter-party pays us the 30-day SOFR rate less the fixed rate.

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Margin requirements consist of initial margin that is posted upon the initiation of a position, maintenance margin that is usually expressed as a percent of initial margin, and variation margin that fluctuates based on the daily mark-to-market relative to maintenance margin requirements.

We currently maintain a broker margin account for Sharp included within other current assets on the condensed consolidated balance sheets which had a balance of $ 2.4 million and $ 1.9 million as of June 30, 2025 and December 31, 2024, respectively.

Financial Statements Presentation

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We did not have any derivative contracts with a credit-risk related contingency.

Fair values of the derivative contracts recorded in the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024, are as follows:

Fair values of the derivative contracts recorded in the condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024, are as follows:

Derivative Assets

Fair Value As Of

(in millions) Balance Sheet Location June 30, 2025 December 31, 2024

(in millions) Balance Sheet Location September 30, 2025 December 31, 2024

Derivatives designated as cash flow hedges

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Total Derivative Assets (1)

(1) Derivative assets, at fair value, include $ 0.3 million in current assets in the condensed consolidated balance sheet at June 30, 2025 and $ 0.6 million at December 31, 2024, with the remainder of the balances classified as long-term .

(1) Derivative assets, at fair value, include $ 0.1 million in current assets in the condensed consolidated balance sheet at September 30, 2025 and $ 0.6 million at December 31, 2024, with the remainder of the balances classified as long-term .

Derivative Liabilities

Fair Value As Of

(in millions) Balance Sheet Location June 30, 2025 December 31, 2024

(in millions) Balance Sheet Location September 30, 2025 December 31, 2024

Derivatives designated as cash flow hedges

2 unchanged sentences

Total Derivative Liabilities (1)

(1) Derivative liabilities, at fair value, include $ 0.2 million in current liabilities in the condensed consolidated balance sheet at June 30, 2025 and no current derivative liabilities at December 31, 2024, with the remainder of the balances classified as long-term.

(1) Derivative liabilities, at fair value, include $ 0.5 million in current liabilities in the condensed consolidated balance sheet at September 30, 2025 and no current derivative liabilities at December 31, 2024, with the remainder of the balances classified as long-term.

The effects of gains and losses from derivative instruments on the condensed consolidated statements of income are as follows:

Amount of Gain (Loss) on Derivatives

Location of Gain For the Three Months Ended June 30, For the Six Months Ended June 30,

Location of Gain For the Three Months Ended September 30, For the Nine Months Ended September 30,

(in millions) (Loss) on Derivatives 2025 2024 2025 2024

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GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value.

The three levels of the fair value hierarchy are the following:

The three levels of the fair value hierarchy include the following:

Fair Value Hierarchy Description of Fair Value Level Fair Value Technique Utilized

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Financial Assets and Liabilities Measured at Fair Value

The following tables summarize our financial assets and liabilities that are measured at fair value on a recurring basis and the fair value measurements, by level, within the fair value hierarchy as of June 30, 2025 and December 31, 2024:

Fair Value Measurements Using:

As of June 30, 2025 Fair Value Quoted Prices in

As of September 30, 2025 Fair Value Quoted Prices in

Active Markets

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Derivative liabilities $ 0.1 $ — $ 0.1 $ —

The changes in the fair value of Level 3 investments for the six months ended June 30, 2025 and 2024 were not material.

The changes in the fair value of Level 3 investments for the nine months ended September 30, 2025 and 2024 were not material.

Investment income from the Level 3 investments is reflected in other income, net in the condensed consolidated statements of income.

At June 30, 2025, there were no non-financial assets or liabilities required to be reported at fair value.

At September 30, 2025, there were no non-financial assets or liabilities required to be reported at fair value.

We review our non-financial assets for impairment at least on an annual basis, as required.

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The fair value of short-term debt approximates the carrying value due to its near-term maturities and because interest rates approximate current market rates (Level 2 measurement).

At June 30, 2025, long-term debt, which includes current maturities but excludes debt issuance costs, had both a carrying value and estimated fair value of approximately $ 1.3 billion.

At September 30, 2025, long-term debt, which includes current maturities but excludes debt issuance costs, had both a carrying value and estimated fair value of approximately $ 1.5 billion.

At December 31, 2024, long-term debt, which includes the current maturities but excludes debt issuance costs, had a carrying value of approximately $ 1.3 billion compared to an estimated fair value of $ 1.2 billion.

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Our outstanding long-term debt is shown below:

June 30, December 31,

September 30, December 31,

(in millions) 2025 2024

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6.43% notes, due May 2028 2.1 2.8

4.88% notes, due August 2028 60.0 —

3.73% notes, due December 2028 8.0 8.0

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5.20% notes, due November 2029 100.0 100.0

5.02% notes, due September 2030 50.0 —

6.62% notes, due December 2030 100.0 100.0

5.16% notes, due August 2031 90.0 —

3.25% notes, due April 2032 47.3 52.5

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All of our outstanding Senior Notes set forth certain business covenants to which we are subject when any note is outstanding, including covenants that limit or restrict our ability, and the ability of our subsidiaries, to incur indebtedness, or place or permit liens and encumbrances on any of our property or the property of our subsidiaries.

In August 2025, we entered into a Note Purchase Agreement, for the issuance of Senior Notes in the aggregate principal amount of $ 200.0 million with an initial funding of $ 150.0 million in August 2025 and an additional $ 50.0 million scheduled in September 2025.

These Senior Notes have an average interest rate of 5.04 percent consisting of $ 60.0 million of 4.88 percent notes due in August 2028, $ 90.0 million of 5.16 percent notes due in August 2031, and $ 50.0 million of 5.02 percent notes due in September 2030.

The proceeds received are being used to reduce short-term borrowings under our Revolver and to fund capital expenditures.

The outstanding principal balance of the notes will be due on their respective maturity dates with interest payments payable semiannually beginning in 2026 until the principal has been paid in full.

In August 2025, we entered into a Note Purchase Agreement for the issuance of Senior Notes in the aggregate principal amount of $ 200.0 million with an initial funding of $ 150.0 million in August 2025 and an additional $ 50.0 million in September 2025.

These Senior Notes have an average interest rate of 5.04 percent consisting of $ 60.0 million of 4.88 percent notes due in August 2028, $ 50.0 million of 5.02 percent notes due in September 2030, and $ 90.0 million of 5.16 percent notes due in August 2031.

The proceeds received were used to reduce short-term borrowings under our Revolver and to fund capital expenditures.

The outstanding principal balance of the Senior Notes will be due on their respective maturity dates with interest payments payable semiannually beginning in 2026

until the principal has been paid in full.

These Senior Notes have similar covenants and default provisions as our other Senior Notes.

On November 1, 2024, we issued 5.20 percent Senior Notes due in November 2029 in the aggregate principal amount of $ 100.0 million.

The proceeds received were used to reduce short-term borrowings under our Revolver and to fund

capital expenditures.

These Senior Notes have similar covenants and default provisions as our other Senior Notes, and have semi-annual interest payments due on May 1 and November 1 of each year beginning in 2025.

The proceeds received were used to reduce short-term borrowings under our Revolver and to fund capital expenditures.

These Senior Notes have similar covenants and default provisions as our other Senior Notes, and have semi-annual interest payments due on May 1 and November 1 of each year which began in 2025.

Shelf Agreements

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In June 2025, we amended our Shelf Agreement with MetLife to expand the total borrowing capacity and extend the term of the agreement for an additional five years.

At June 30, 2025, a total of $ 305.0 million of borrowing capacity was available under these Shelf Agreements.

At September 30, 2025, a total of $ 305.0 million of borrowing capacity was available under these Shelf Agreements.

Short-Term Borrowings

As of June 30, 2025, we are authorized by our Board of Directors to borrow up to $ 450.0 million of short-term debt, as required.

At June 30, 2025 and December 31, 2024, we had $ 245.3 million and $ 196.5 million, respectively, of short-term borrowings outstanding at a weighted average interest rate of 5.08 percent and 5.06 percent, respectively.

There were no borrowings outstanding under the sustainable investment sublimit of the 364-day tranche at June 30, 2025.

As of September 30, 2025, we are authorized by our BOD to borrow up to $ 450.0 million of short-term debt, as required.

At September 30, 2025 and December 31, 2024, we had $ 95.8 million and $ 196.5 million, respectively, of short-term borrowings outstanding at a weighted average interest rate of 4.96 percent and 5.06 percent, respectively.

There were no borrowings outstanding under the sustainable investment sublimit of the 364-day tranche at September 30, 2025.

In August 2024, we amended and restated our revolving credit agreement, which increased the total borrowing capacity under the Revolver to $ 450.0 million, including $ 250.0 million available under the 364-day tranche and $ 200.0 million available under the five-year tranche which expires in August 2029.

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We are required by the financial covenants in the Revolver to maintain, at the end of each fiscal year, a funded indebtedness ratio of no greater than 65 percent.

As of June 30, 2025, we were in compliance with this covenant.

Our total available credit under the Revolver at June 30, 2025 was $ 197.1 million.

As of June 30, 2025, we had issued $ 7.6 million in letters of credit to various counterparties under the Revolver.

As of September 30, 2025, we were in compliance with this covenant.

Our total available credit under the Revolver at September 30, 2025 was $ 349.9 million.

As of September 30, 2025, we had issued $ 4.3 million in letters of credit to various counterparties under the Revolver.

These letters of credit are not included in the outstanding short-term borrowings and we do not anticipate that they will be drawn upon by the counterparties.

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Office space is leased to provide adequate workspace for our employees in several locations throughout our service territories.

We lease land at various locations throughout our service territories to enable us to inject natural gas into underground storage and distribution systems, for bulk storage capacity, for our propane operations and for storage of equipment used in repairs and maintenance of our infrastructure.

We lease land at various locations throughout our service territories to enable us to inject natural gas into underground

storage and distribution systems, for bulk storage capacity, for our propane operations and for storage of equipment used in repairs and maintenance of our infrastructure.

We lease natural gas compressors to ensure timely and reliable transportation of natural gas to our customers.

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The exercise of lease renewal options is at our sole discretion.

The amounts disclosed in our condensed consolidated balance sheet at June 30, 2025, pertaining to the right-of-use assets and lease liabilities, are measured based on our current expectations of exercising our available renewal options.

The amounts disclosed in our condensed consolidated balance sheet at September 30, 2025, pertaining to the right-of-use assets and lease liabilities, are measured based on our current expectations of exercising our available renewal options.

Our existing leases are not subject to any restrictions or covenants that would preclude our ability to pay dividends, obtain financing or enter into additional leases.

As of June 30, 2025, we have not entered into any leases, which have not yet commenced, that would entitle us to significant rights or create additional obligations.

Total operating lease cost included in our condensed consolidated statements of income were not material for the three and six months ended June 30, 2025 and 2024.

Total cash paid for amounts included in the measurement of lease liabilities included in our condensed consolidated statements of cash flows were not material for the six months ended June 30, 2025 and 2024.

The following table presents the balance and classifications of our right of use assets and lease liabilities included in our condensed consolidated balance sheets at June 30, 2025 and December 31, 2024:

(in millions) Balance sheet classification June 30, 2025 December 31, 2024

As of September 30, 2025, we have not entered into any leases, which have not yet commenced, that would entitle us to significant rights or create additional obligations.

Total operating lease cost included in our condensed consolidated statements of income were not material for the three and nine months ended September 30, 2025 and 2024.

Total cash paid for amounts included in the measurement of lease liabilities included in our condensed consolidated statements of cash flows were not material for the nine months ended September 30, 2025 and 2024.

The following table presents the balance and classifications of our right of use assets and lease liabilities included in our condensed consolidated balance sheets at September 30, 2025 and December 31, 2024:

(in millions) Balance sheet classification September 30, 2025 December 31, 2024

Operating lease assets Operating lease right-of-use assets $ 9.6 $ 10.5

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Total lease liabilities $ 9.9 $ 11.1

The following table presents our weighted-average remaining lease terms and weighted-average discount rates for our operating leases at June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024

The following table presents our weighted-average remaining lease terms and weighted-average discount rates for our operating leases at September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024

Weighted-average remaining lease term ( in years )

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Operating leases 3.5 % 3.5 %

The following table presents the future undiscounted maturities of our operating and financing leases at June 30, 2025 and for each of the next five years and thereafter:

The following table presents the future undiscounted maturities of our operating and financing leases at September 30, 2025 and for each of the next five years and thereafter:

(in millions) Operating Leases (1)

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements