Why One Fund Has a $12 Million Bet on Chesapeake Utilities Stock

Tufton Capital Management disclosed a purchase of 23,304 shares of Chesapeake Utilities (NYSE:CPK) in a January 28 SEC filing, with the estimated transaction value at $3.07 million based on the quarter’s average pricing.

What happened

According to a January 28 SEC filing, Tufton Capital Management increased its position in Chesapeake Utilities (NYSE:CPK) by 23,304 shares. The estimated transaction value, based on the quarter’s average share price, was $3.07 million. Meanwhile, the quarter-end value of Tufton’s Chesapeake Utilities stake increased by $2.20 million, a figure that includes both trading activity and market price changes.

What else to know

The Chesapeake Utilities position now represents 2.06% of Tufton’s 13F assets under management.

Top holdings after the filing:

• NASDAQ: MSFT: $35.12 million (6.1% of AUM)
• NASDAQ: GOOGL: $34.73 million (6.1% of AUM)
• NASDAQ: AAPL: $27.34 million (4.8% of AUM)
• NYSE: JPM: $23.54 million (4.1% of AUM)
• NYSE: TJX: $19.06 million (3.3% of AUM)

As of January 27, Chesapeake Utilities shares were priced at $127.65, up 5.15% over the past year and lagging the S&P 500 by about 11 percentage points.

Company overview

Company snapshot

• Chesapeake Utilities provides regulated and unregulated energy delivery, including natural gas distribution, transmission, electric distribution, propane operations, and energy-related services.
• The company generates revenue through regulated utility services and unregulated energy supply, infrastructure, and value-added solutions across the eastern United States.
• It serves residential, commercial, industrial, and utility customers in Delaware, Maryland, Florida, and the broader Mid-Atlantic and Southeast regions.

Chesapeake Utilities is a diversified energy delivery company with a strong presence in both regulated and unregulated markets.

What this transaction means for investors

Chesapeake Utilities is in the middle of a capital-heavy growth phase where regulated returns and infrastructure expansion are doing the heavy lifting, not market momentum. For long-term investors, that combination tends to matter more than short-term price action.

The company’s latest quarterly results reinforce that setup. Third-quarter net income rose to $19.4 million, or $0.82 per share, while adjusted earnings edged higher as organic gas distribution growth, transmission projects, and investments in renewable and liquefied natural gas scaled up. Management reaffirmed 2025 adjusted EPS guidance of $6.15 to $6.35 and raised capital spending expectations to as much as $450 million, signaling confidence in its regulatory pipeline and project backlog.

Against that backdrop, Tufton’s position sits comfortably alongside a portfolio anchored by mega-cap tech and financials, suggesting this is less about chasing yield and more about balance. Chesapeake offers something different, including regulated earnings visibility, infrastructure-driven growth, and modest but durable cash flows. Ultimately, the stock’s underperformance versus the S&P 500 over the past year likely reflects that slower profile, and not deteriorating fundamentals.

JPMorgan Chase is an advertising partner of Motley Fool Money. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, JPMorgan Chase, Microsoft, and TJX Companies. The Motley Fool has a disclosure policy.