Chesapeake Utilities’ (CPK) stock edged up Wednesday in extended-hours trading after the energy provider announced that its board of directors had approved a 3-for-2 stock split of its outstanding common stock. The Dover, Delaware-based company said the split will be effected in the form of a stock dividend entitling each stockholder as of the record date to receive one additional share of common stock for every two shares of common stock owned.
The stock dividend will be issued on Sept. 8 to all stockholders of record at the close of business on August 13, 2014.
“The stock split highlights the exceptional value Chesapeake has delivered to stockholders over the long-term as well as the short-term. Our team has identified and executed upon many growth opportunities, which have led to profitable earnings growth, superior dividend growth and increased stockholder value, and we are excited about our prospects for continued growth,” Michael P. McMasters, President and CEO Chesapeake Utilities Corp. said in statement. “The decision to split the stock will also make the shares more affordable to current and potential investors and should lead to an increase in the trading volume of our stock.”
Chesapeake’s last stock split was 25 years ago when a three-for-two stock split occurred.
Shares in the $688 million market cap company closed at $70.91 on Wednesday.