As shown on Slide 4, earnings per share from continuing operations was $1.96, an increase of $0.19 or 10.7% compared to our first quarter 2020 earnings per share of $1.77.
Gross margin increased more than $17 million over the first quarter of 2020.
In the past year, our utility distribution and customer count increased by 7.4%.
We projected capital investments for 2021 at approximately $200 million, and we're on track to achieve that target.
Our first quarter capital investment totaled just under $49 million.
Earlier today, our Board of Directors have approved an annualized dividend payment of $1.92 per share, a $0.16 per share or 9.1% dividend increase.
The $0.16 per share increase in the annualized dividend closely aligns our five-year earnings growth rate of 9.4% through December 31, 2020, with our five-year dividend growth rate of 9.5%, as shown on Slide 5, including this most recent increase.
Chesapeake Utilities has paid dividends to its shareholders without interruption for 60 years and has increased its annualized dividend every year since 2004.
Turning to Slide 6, net income from continuing operations for the quarter was $34.5 million compared to $29 million for the same quarter of last year.
This represents a growth in net income of $5.5 million or approximately 19%.
EPS from continuing operations for the first quarter compared to the first quarter last year grew by $0.19 to $1.96 per share from $1.77, representing growth of just under 11%.
Growth initiatives and customer consumption drove the growth rate in net income by 19%, while the earnings per share growth rate of 11% is a result of the significant amount of equity we successfully issued in the third and fourth quarters of 2020 via the ATM program and our various stock plans.
Gross margin increased 17.1% compared to the first quarter last year, while operating income grew, because of these impacts, by 22.5%.
Gross margin net of specific expense attributes grew $0.65 per share after tax.
Higher earnings for the quarter reflect increased earnings across the business from: first, customer consumption, as Jeff mentioned primarily weather focused, was $0.26 per share; pipeline expansion projects another $0.11 per share; higher retail propane margins per gallon increased margin by $0.06 per share; organic growth in our natural gas distribution operations added $0.04 per share; contributions from recent acquisitions, including Elkton Gas and Western Natural Gas added $0.04 per share; the Hurricane Michael regulatory settlement also added $0.04 per share after associated depreciation and amortization of associated regulatory assets; and margin from Marlin increased by $0.03 per share; lastly, from our Florida GRIP Reliability and Infrastructure Program, we added $0.02 per share.
These increases were offset by the absence of property sales that occurred in the first quarter of last year, which represented $0.14 per share and the increased shares we added, that I just referred to, another $0.12 per share.
Given our opportunistic equity issuances over the past 12 months to take advantage of our strong equity market position.
Finally, depreciation, payroll and facilities expenses basically drove our earnings per share down by $0.20 per share because of the growth in our business.
As you can see though first on Slide 9, the forecast for 2021 capital expenditures remains at our previously announced guidance of $175 million to $200 million.
Again, the investment is concentrated with approximately 80% budgeted in new regulated energy assets.
Year-to-date, as Jeff mentioned, we've invested just under $49 million in new capital investments.
As you can see on Slide 10, as of the end of March, total capitalization was $1.4 billion, comprised of: approximately 52% stockholders' equity, which is now $726 million; we had 37% in long-term debt at an average fixed rate of 3.62%; and $156 million in short-term debt under our revolver at an average interest rate of 1.2%.
Chesapeake Utilities current market capitalization is approximately $2 billion.
Key projects are expected to generate approximately $60 million and $67 million in gross margin for the years 2021 and 2022, respectively.
Pipeline expansions are expected to generate $6.7 million in incremental margin in 2021.
The Hurricane Michael proceeding settlement will again generate $11 million in gross margin in 2021, it remains at that level in 2022.
We're particularly pleased with the full integration of margin estimates of $5.8 million and $6.1 million for 2021 and 2022, respectively, from the acquisitions of Elkton Gas and Western Natural Gas.
In total, the incremental margin growth from these key projects and initiatives represents approximately $14.1 million for 2021 and $7.5 million for 2022.
I realized that we've included a $1 million placeholder for RNG transportation on the slide for a couple of quarters, and have not yet disclosed the extent of anticipated RNG production-related investments.
As a final note, the Auburndale Pipeline, $679,000 and Boulden acquisition $3.9 million became fully in service in 2020, so these ongoing mature projects have been removed from this table.
Eastern Shore Natural Gas Del-Mar Energy Pathway expansion project currently under construction and our related distribution system expansion will bring our pipelines to within 1.5 mile of the Westover plant, and we will extend the distribution system to provide service.
Our investment in the project is estimated at approximately $12 million, with in-service anticipated in late 2022.
The station will be the larger CNG fueling facility on the East Coast, with capacity to fuel approximately 185 semi-trucks per day.
At peak, we were fueling 160 CNG buses a day before the permanent pipeline and CNG fueling facilities were put in place.
Based on this year's results, over 90% of the shares voted were in favor of the proposals presented before them.
While we're beginning fiscal year of 2021 with very positive financial performance, as indicated by our earnings-per-share growth, capital investments, key projects and initiatives, and our dividend growth, as you can see on Slides 19 and 20, we're affirming our five-year capital guidance for the period of 2021 to 2025 at $750 million to $1 billion.
Our 2025 earnings per share guidance range of $6.05 to $6.25 per share represents an average earnings per share growth of approximately 10% from our initiation of guidance at the end of 2017.
Focused on delivering top quartile performance, including shareholder return, which has exceeded 16% compound annual growth for each period, one, three, five, 10 and 20 years through April 30, 2021.

Summary:
As shown on Slide 4, earnings per share from continuing operations was $1.96, an increase of $0.19 or 10.7% compared to our first quarter 2020 earnings per share of $1.77.
EPS from continuing operations for the first quarter compared to the first quarter last year grew by $0.19 to $1.96 per share from $1.77, representing growth of just under 11%.