Summary of Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2026 | |
| Accounting Policies [Abstract] | |
| Basis of Presentation | Basis of Presentation References in this document to the “Company,” “Chesapeake Utilities,” “we,” “us” and “our” are intended to mean Chesapeake Utilities Corporation, its divisions and/or its subsidiaries, as appropriate in the context of the disclosure. The accompanying unaudited condensed consolidated financial statements have been prepared in compliance with the rules and regulations of the SEC and GAAP. In accordance with these rules and regulations, certain information and disclosures normally required for audited financial statements have been condensed or omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in our latest Annual Report on Form 10-K for the year ended December 31, 2025. In the opinion of management, these financial statements reflect all adjustments that are necessary for a fair presentation of our results of operations, financial position and cash flows for the interim periods presented. Where necessary to improve comparability, prior period amounts have been reclassified to conform to current period presentation. Due to the seasonality of our business, results for interim periods are not necessarily indicative of results for the entire fiscal year. Revenue and earnings are typically greater during the first and fourth quarters, when consumption of energy is highest due to colder temperatures.
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| FASB Statements and Other Authoritative Pronouncements | Recently Adopted Accounting Standards FASB Income Taxes (ASC 740) - In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which modifies required income tax disclosures primarily related to an entity's rate reconciliation and information pertaining to income taxes paid. These enhancements address requests from investors related to transparency and usefulness of income tax disclosures. 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 an impact on our financial position or results of operations. Recent Accounting Standards Yet to be Adopted FASB Income Statement Expense Disaggregation (ASC 220) - In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires disclosure in the notes to financial statements of specified information about certain costs and expenses. ASU 2024-03 will be effective for our annual financial statements beginning January 1, 2027 and our interim financial statements beginning January 1, 2028. 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. Derivatives and Hedging (ASC 815) - In November 2025, the FASB issued ASU 2025-09, Hedge Accounting Improvements. This update aims to align hedge accounting more closely with an entity's risk management activities. The update focuses on reducing complexity and expands the eligibility of highly effective economic hedges. ASU 2025-09 will be effective for our interim and annual financial statements beginning January 1, 2027. We do not expect this ASU to have a material impact on our financial position or results of operation. Interim Reporting (ASC 270) - In December 2025, the FASB issued ASU 2025-11, Narrow-Scope Improvements. The update clarifies the scope and content requirements for interim financial reporting. It will not fundamentally change existing interim disclosure requirements but improves the navigability of the guidance. ASU 2025-11 will be effective for our interim and annual financial statements beginning January 1, 2028. ASU 2025-11 only impacts disclosures, and as a result, will not have an impact on our financial position or results of operations. Federal Statute Updates In July 2025, the One Big Beautiful Bill Act (referred to as the "OBBBA") was signed into law. The comprehensive legislative package includes, among other topics, significant tax law changes and regulatory compliance updates with various effective dates, including provisions related to the reinstatement of bonus depreciation for non-regulated qualified property, limitations of interest expense deductions, and modified provisions of the inflation Reduction Act related to production and investment tax credits. The Company expects the provisions of the OBBBA to have a net favorable impact on its income tax position over the long term, primarily due to accelerated tax benefits associated with qualifying capital investments.
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