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Chesapeake Utilities Corporation Reports Higher Earnings For The First Quarter

May 6, 2014

- First quarter net income increased to $17.7 million, or $1.82 per share

DOVER, Del., May 6, 2014 /PRNewswire/ — Chesapeake Utilities Corporation (NYSE: CPK) today reported first quarter financial results. The Company’s net income for the three months ended March 31, 2014 was $17.7 million, or $1.82 per share. This represents an increase of $2.8 million, or $0.28 per share, over the same quarter in 2013.

“We begin 2014 with another great quarter of financial results and growth. Our first quarter results reflect positive contributions from natural gas service expansions and acquisitions completed in 2013, as well as additional gross margin generated from colder temperatures,” stated Michael P. McMasters, President and Chief Executive Officer of Chesapeake Utilities Corporation. “I am particularly proud of our employees’ unwavering determination and drive during a significantly challenging winter. Operationally, we faced several periods of extreme weather, and our natural gas and propane employees responded to the challenges created by the sharply increased customer demands and the weather’s impact on the infrastructures of the Company and our suppliers,” Mr. McMasters added.

“We are continuing to identify and evaluate potential opportunities to further expand our regulated and unregulated service offerings within and beyond our current markets, and we are making the investments needed to support both our recent and future growth,” Mr. McMasters added.

A more detailed discussion and analysis of the Company’s results for each segment are provided in the following pages.

Operating Results for the Three Months Ended March 31, 2014 and 2013

The Company’s operating income for the three months ended March 31, 2014 was $31.6 million, an increase of $5.1 million over the same quarter in 2013. Gross margin increased by $11.7 million, which was partially offset by an increase of $6.6 million in other operating expenses. Acquisitions completed in 2013 resulted in $4.8 million of additional gross margin and $2.1 million of other operating expenses during the first quarter of 2014. The remaining increase in gross margin was due primarily to: (a) $2.7 million from increased usage due to colder temperatures on the Delmarva Peninsula and in Florida; (b) $1.4 million in new margin generated as a result of natural gas service expansions; (c) $1.0 million in increased wholesale propane sales; (d) $889,000 in higher profit from increased propane wholesale marketing activity; and (e) $724,000 in additional revenue related to continued implementation of the Florida Gas Replacement Infrastructure Program (“GRIP”). These increases in gross margin were partially offset by $516,000 in lower retail propane margins as a result of retail margins on the Delmarva Peninsula beginning to revert to more normal levels. Other operating expenses increases included primarily: (a) $1.2 million in increased payroll to support recent growth and expand the Company’s capabilities for future growth; (b) $980,000 in increased accruals for incentive bonuses as a result of the Company’s financial performance to date; (c) $726,000 in increased depreciation and property tax costs associated with new capital investments; and (d) $674,000 in higher benefits costs as a result of healthcare costs and other employee-related expenses.

Regulated Energy

Operating income for the regulated energy segment increased by $3.8 million to $21.1 million for the quarter ended March 31, 2014, compared to the same quarter in 2013. A $7.9 million increase in gross margin was partially offset by a $4.1 million increase in other operating expenses. The significant components of the gross margin increase included:

    --  $4.3 million generated by Sandpiper Energy, Inc. ("Sandpiper"), which
        acquired the operating assets of Eastern Shore Gas ("ESG") and its
        affiliates in May 2013;
    --  $1.4 million from new margin generated from major service expansions
        completed in 2013;
    --  $836,000 from higher usage due to colder temperatures during the first
        quarter of 2014, compared to the same quarter in 2013; and
    --  $724,000 generated under the Florida GRIP.

The increase in other operating expenses was due primarily to: (a) $1.4 million in other operating expenses associated with Sandpiper’s operations; (b) $744,000 in higher depreciation, amortization, asset removal and property tax costs associated with capital investments to support growth and maintain system integrity; (c) $643,000 in increased accruals for incentive bonuses as a result of strong financial performance during the first quarter; (d) $616,000 in higher payroll costs to support recent growth and expand the Company’s capabilities for future growth; and (e) $478,000 in higher benefits costs.

Unregulated Energy

Operating income for the unregulated energy segment increased by $1.5 million to $10.9 million for the quarter ended March 31, 2014, compared to the same quarter in 2013. A $3.6 million increase in gross margin was partially offset by a $2.1 million increase in other operating expenses. The significant components of the gross margin increase included:

    --  $1.9 million as a result of higher consumption by retail propane
        customers due to colder temperatures;
    --  $1.0 million in increased wholesale propane sales due primarily to a
        supply agreement entered into in May 2013 with an affiliate of ESG;
    --  $889,000 in higher profit from Xeron, Inc. ("Xeron"), the Company's
        propane wholesale marketing subsidiary, as higher volatility in
        wholesale propane prices resulted in higher profit on trading activity;
        and
    --  $440,000 generated by other acquisitions consummated in 2013.

These increases were partially offset by a decrease of $516,000 due to lower retail propane margins as margins began to return to more normal levels in 2014.

The increase in other operating expenses was due primarily to: (a) $632,000 in additional expenses incurred by the entities acquired in 2013; (b) $392,000 in higher payroll expense due to increased seasonal overtime and associated resources; and (c) $389,000 in increased accruals for incentive bonuses as a result of the strong first quarter performance.

Other

The “other” segment, which consists primarily of BravePoint(®), Inc., the Company’s advanced information services subsidiary, reported an operating loss of $326,000 for the quarter ended March 31, 2014, compared to an operating loss of $125,000 in the same quarter in 2013. This decline reflected a $344,000 increase in operating expenses partially offset by a $143,000 increase in gross margin.

Matters discussed in this release may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements. Please refer to the Safe Harbor for Forward-Looking Statements in the Company’s most recent report on Form 10-K for further information on the risks and uncertainties related to the Company’s forward-looking statements.

The discussions of the results use the term “gross margin,” a non-Generally Accepted Accounting Principles (“GAAP”) financial measure, which management uses to evaluate the performance of the Company’s business segments. For an explanation of the calculation of “gross margin,” see the footnote to the Financial Summary.

Unless otherwise noted, earnings per share information is presented on a diluted basis.

Conference Call

Chesapeake Utilities Corporation will host a conference call on May 8, 2014 at 10:30 a.m. Eastern Time to discuss the Company’s financial results for the first quarter ended March 31, 2014. To participate in this call, dial 866.821.5457 and reference Chesapeake Utilities Corporation’s 2014 First Quarter Financial Results Conference Call. To access the replay recording of this call, please visit the Company’s website at http://investor.chpk.com/results.cfm.

About Chesapeake Utilities Corporation

Chesapeake Utilities Corporation is a diversified energy company engaged in natural gas distribution, transmission and marketing, electricity distribution, propane gas distribution and wholesale marketing, advanced information services and other related services. Information about Chesapeake Utilities Corporation and the Chesapeake family of businesses is available at http://www.chpk.com.

For more information, contact:

Beth W. Cooper

Senior Vice President & Chief Financial Officer

302.734.6799


                       Financial Summary
                (in thousands, except per-share)
                -------------------------------

                                    Three Months
                                       Ended

                                     March 31,
                                     ---------

                                2014                2013
                                ----                ----

    Gross Margin (1)

    Regulated Energy                   $47,859            $39,951

    Unregulated Energy        20,814               17,184

    Other                      2,032               1,889
                                                   -----

    Total Gross Margin                 $70,705            $59,024
                                       =======              =====

    Operating Income (Loss)

    Regulated Energy                   $21,091            $17,306

    Unregulated Energy        10,858               9,369

    Other                       (326)              (125)

    Total Operating Income    31,623               26,550
                              ------               ------

    Other Income, net of
     other expenses                6                 289

    Interest Charges           2,155               2,072

    Income Taxes              11,793               9,898

    Net Income                         $17,681            $14,869
                                       =======              =====

    Earnings Per Share of
     Common Stock

    Basic                                $1.83              $1.55

    Diluted                              $1.82              $1.54

((1)) “Gross margin” is determined by deducting the cost of sales from operating revenue. Cost of sales includes the purchased fuel cost for natural gas, electricity and propane and the cost of labor spent on direct revenue-producing activities. Gross margin should not be considered an alternative to operating income or net income, which is determined in accordance with GAAP. Chesapeake believes that gross margin, although a non-GAAP measure, is useful and meaningful to investors as a basis for making investment decisions. It provides investors with information that demonstrates the profitability achieved by the Company under its allowed rates for regulated operations and under its competitive pricing structure for non-regulated segments. Chesapeake’s management uses gross margin in measuring its business units’ performance and has historically analyzed and reported gross margin information publicly. Other companies may calculate gross margin in a different manner.


    Financial Summary Highlights

    Key variances for the three months ended March 31, 2014 included:

    (in thousands, except per share)                                     Pre-tax             Net                Earnings

                                                                         Income           Income            Per Share
                                                                         ------           ------            ---------

    First Quarter of 2013 Reported Results                                        $24,767            $14,869                 $1.54

    Adjusting for unusual items:

    Weather impact (due primarily to colder temperatures in 2014)          2,711             1,628                   0.17

                                                                           2,711             1,628                   0.17
                                                                           -----             -----                   ----

    Increased (Decreased) Gross Margins:

    Major Projects (See Major Projects Highlights table)

    Contribution from Sandpiper                                            4,289             2,575                   0.27

    Service expansions                                                     1,423               855                   0.08

    Increased wholesale propane sales                                      1,032               620                   0.06

    Propane wholesale marketing                                              889               534                   0.06

    GRIP                                                                     724               435                   0.04

    Lower retail propane margins                                            (516)            (310)                  (0.03)

    Contribution from other acquisitions                                     502               302                   0.03
                                                                             ---               ---                   ----

                                                                           8,343             5,011                   0.51
                                                                           -----             -----                   ----

    Increased Other Operating Expenses:

    Expenses from acquisitions                                           (2,117)             (1,271)                  (0.14)

    Higher payroll costs                                                 (1,161)             (697)                  (0.07)

    Increased accruals for incentive compensation                           (980)            (589)                  (0.06)

    Higher depreciation, asset removal and property tax costs due to new    (726)            (436)                  (0.04)
           capital investments

    Higher benefits costs                                                   (674)            (405)                  (0.04)
                                                                            ----              ----                  -----

                                                                         (5,658)             (3,398)                  (0.35)
                                                                          ------             ------                  -----

    Net Other Changes                                                       (689)            (429)                  (0.05)
                                                                            ----              ----

    First Quarter of 2014 Reported Results                                        $29,474            $17,681                 $1.82
                                                                                  =======            =======                 =====

The following information highlights certain key factors contributing to the Company’s results for the quarter ended March 31, 2014:

Major Projects

Acquisition

In May 2013, the Company completed the purchase of the operating assets of ESG and its affiliates. Approximately 11,000 residential and commercial underground propane distribution system customers acquired in this transaction are now being served by Sandpiper under the tariff approved by the Maryland Public Service Commission (“PSC”). The Company is evaluating the potential conversion of some of these systems to natural gas. This acquisition is expected to be accretive to earnings per share in the first full year of operations. The Company generated $4.3 million in additional gross margin from Sandpiper and incurred $1.4 million in other operating expenses for the three months ended March 31, 2014.

Service Expansions

During 2013, Eastern Shore Natural Gas Company (“Eastern Shore”), the Company’s interstate natural gas transmission subsidiary, commenced new transmission services to local distribution utilities and industrial customers in Delaware and Maryland. These new services generated additional gross margin of $1.2 million in the first quarter of 2014 over the same quarter in 2013.

In August 2013, Peninsula Pipeline Company, Inc., the Company’s intrastate natural gas transmission subsidiary, commenced a new firm transportation service in Florida with an unaffiliated utility. This new service generated $210,000 in gross margin for the three months ended March 31, 2014.

Future System Expansions and New Services

In June 2013, Eastern Shore filed an application with the Federal Energy Regulatory Commission, seeking approval to construct a pipeline lateral to an industrial customer facility under construction in Kent County, Delaware. Upon completion of construction of the required facilities, this new service is expected to generate annual gross margin of approximately $1.2 million to $1.8 million. The new facilities include approximately 5.5 miles of lateral pipeline and metering facilities and extend from Eastern Shore’s mainline to the new industrial customer facility. The construction of this lateral will not increase the overall capacity of Eastern Shore’s mainline system. Service is projected to commence in January 2015.

Eastern Shore also executed a one-year contract with another industrial customer to provide 50,000 dekatherms per day of additional service from April 2014 to April 2015. This short-term contract is expected to generate $1.9 million and $767,000 of gross margin in 2014 and 2015, respectively.

GRIP

The Florida PSC approved the GRIP, which is designed to recover capital and other program-related-costs, inclusive of a return on investment, to replace older pipes in the Company’s Florida service territories. The Company received approval to invest $75 million to replace qualifying distribution mains and services (any material other than coated steel or plastic). Since the beginning of 2013, $21.4 million has been invested, $4.6 million of which is in 2014. These investments generated additional gross margin of $724,000 for the three months ended March 31, 2014 over the same quarter in 2013.

Investing in Growth

The Company continues to expand its resources and capabilities to support growth. The Company’s Delmarva natural gas distribution operation is in the early stages of natural gas distribution expansions in Sussex County, Delaware, and Worcester and Cecil Counties, Maryland. These expansions will require not only the construction or conversion of distribution facilities, but also the conversion of residential customers’ appliances or equipment. The Company has begun the process of reorganizing our Delmarva natural gas distribution operation and expects to increase staffing to support future expansions. Eastern Shore expects to increase its staffing to support recent and future expansions of its facilities and services. Finally, to increase the Company’s overall capabilities to support sustained future growth, resources have been added in the Company’s corporate shared services departments. For the three months ended March 31, 2014, payroll expenses for the Company’s Regulated Energy segment increased by $616,000, compared to the same quarter in 2013, as a result of the increased resources. The Company expects to make additional investments in human resources, as needed, to further develop its capability to capitalize on future growth opportunities.

Weather and Consumption

Temperatures on the Delmarva Peninsula and in Florida during the first three months of 2014 were significantly colder than the first quarter of 2013. The following tables highlight the heating degree-day (“HDD”) and cooling degree-day (“CDD”) information for the quarters ended March 31, 2014 and 2013 and the gross margin variance resulting from the weather fluctuation in those periods.


    HDD and CDD Information

                                   Three
                                  Months
                                   Ended

                                March 31,
                                ---------

                             2014          2013      Variance
                             ----          ----      --------

    Delmarva

    Actual HDD              2,717         2,407             310

    10-Year Average HDD
     ("Normal")             2,361         2,377             (16)
                            -----         -----

    Variance from Normal      356            30

    Florida

    Actual HDD                557           468              89

    10-Year Average HDD
     ("Normal")               529           541             (12)

    Variance from Normal       28           (73)

    Florida

    Actual CDD                 42            81             (39)

    10-Year Average CDD
     ("Normal")                74            75              (1)

    Variance from Normal      (32)            6


    Gross Margin Variance attributed to
     Weather

    (in thousands)                       2014           2014
                                         vs.          vs.
                                         2013         Normal
                                        -----        ------

    Delmarva

    Regulated Energy                            $511            $617

    Unregulated Energy                  1,827           1,096

    Florida

    Regulated Energy                      325           (207)

    Unregulated Energy                     48              81

    Total                                     $2,711          $1,587
                                              ======          ======

Propane Prices

The Company’s retail propane margins began to revert to more normal levels during the first quarter of 2014, as a significant increase in wholesale prices in late 2013 and early 2014 increased the Company’s average propane inventory cost. The decline in retail propane margins reduced the Company’s gross margin by $516,000 during the first quarter of 2014, compared to the same quarter in 2013.

The increase in wholesale propane sales generated additional gross margin of $1.0 million due primarily to the wholesale propane supply agreements entered into in May 2013 with an affiliate of ESG.

Xeron, which benefits from wholesale price volatility by entering into trading transactions, generated an increase in gross margin of $889,000 during the first quarter of 2014. Higher wholesale price volatility during the current period resulted in higher profits on executed trades.



                                                                      Chesapeake Utilities Corporation and Subsidiaries

                                                                             Major Project Highlights (Unaudited)

    Major Projects Initiated (dollars in thousands):

                                                                                                                           Gross Margin
                                                                                                                           ------------

                                                                                                                          Q1
                                                                                                                         2014           2014 (1)
                                                                                                                        -----            ------

    Acquisition:

    ESG acquisition being served by Sandpiper in Worcester County, Maryland (2)                                                $4,289             $9,817

    Service Expansions

    Natural Gas Distribution:

    Long-term

    Sussex County, Delaware (3)                                                                                                  $204               $694

    Natural Gas Transmission:

    Short-term

    New Castle County, Delaware (4) (5)                                                                                     $       -             $1,862

    Total Short-term                                                                                                        $       -             $1,862

    Long-term

    Sussex County, Delaware (6)                                                                                                  $431             $1,725

    New Castle County, Delaware (6) (7)                                                                                   741             2,964

    Nassau County, Florida (6)                                                                                            327             1,300

    Worcester County, Maryland (6)                                                                                        137               547

    Cecil County, Maryland (6)                                                                                            287             1,147

    Indian River County, Florida                                                                                          210               840

    Kent County, Delaware                                                                                                 665             2,660
                                                                                                                          ---             -----

    Total Long-term                                                                                                            $2,798            $11,183

    Total Service Expansions                                                                                                   $3,002            $13,739

    Total Major Projects                                                                                                       $7,291            $23,556
                                                                                                                                 ====              =====

    Less: 2013 Margin                                                                                                          $1,579            $13,176

    Incremental Margin in 2014 over 2013                                                                                       $5,712            $10,380
                                                                                                                                 ====              =====

    (1)     The figures provided
            represent the
            estimated annual gross
            margin.

    (2)     During the quarter
            ended March 31, 2014,
            we incurred $1.4
            million in other
            operating expenses
            related to Sandpiper's
            operation. We expect
            to incur $6.3 million
            in other operating
            expenses for the
            entire 2014.

    (3)     These services
            generated $201,000 in
            gross margin in the
            first quarter of 2013.

    (4)     Expected gross margin
            in 2014 includes $1.9
            million from a new
            short-term contract
            for 50,000 Dts/d for
            one year, which began
            in April 2014.

    (5)     During the first
            quarter of 2013 we
            provided short-term
            service and generated
            $40,000 in gross
            margin. The short-
            term service was
            displaced by a new
            long-term service in
            November 2013.

    (6)     Gross margin generated
            by these services in
            the first quarter of
            2013 was $345,000 for
            Sussex County,
            Delaware; $343,000 for
            New Castle County,
            Delaware; $332,000 for
            Nassau County,
            Florida; $98,000 for
            Worcester County
            Maryland and $220,000
            for Cecil County,
            Maryland.

    (7)     Gross margin generated
            from this service
            expansion replaces the
            10,000 Dts/d
            contract, which
            expired in November
            2012. This expired
            contract had
            annualized gross
            margin of $1.1
            million.


    Future System Expansions and New Services with Executed Contracts (dollars in thousands):

    Project                                                                                   Estimated Date of New Estimated 2014 Margin        Estimated Annualized
                                                                                                     Service                                            Margin
    ---                                                                                              -------                                            ------

    Short-term Natural Gas Transmission Service in New Castle                                 From Apr-14 to Apr-15                       $1,860                          $2,629
    County, Delaware

    Service to an industrial customer facility under construction                               Starting in Jan-15                            $-                $1,200 to $1,800
    in Kent County, Delaware (1)

    (1)     The estimated gross margin is
            based upon the precedent
            agreement entered into by
            the parties for these
            services. A firm
            transportation service
            agreement will be entered
            into by the parties upon
            satisfying certain
            conditions. The construction
            of this lateral will not
            increase the overall
            capacity of the Company's
            mainline system.



            Chesapeake Utilities Corporation and Subsidiaries

         Condensed Consolidated Statements of Income (Unaudited)

            (in thousands, except shares and per share data)

                                            Three Months
                                                Ended

                                             March 31,

                                         2014                 2013
                                         ----                 ----

    Operating Revenues

    Regulated Energy                           $102,166             $81,566

    Unregulated Energy                 79,973               54,991

    Other                               4,198                4,172

    Total Operating Revenues          186,337               140,729
                                      -------               -------

    Operating Expenses

    Regulated energy cost of sales     54,307               41,615

    Unregulated energy and other
     cost of sales                     61,325               40,090

    Operations                         26,626               21,754

    Maintenance                         2,148                1,722

    Depreciation and amortization       6,635                5,820

    Other taxes                         3,673                3,178

    Total operating expenses          154,714               114,179
                                      -------               -------

    Operating Income                   31,623               26,550

    Other income, net of other
     expenses                               6                  289

    Interest charges                    2,155                2,072
                                        -----                -----

    Income Before Income Taxes         29,474               24,767

    Income taxes                       11,793                9,898

    Net Income                                  $17,681             $14,869
                                                =======             =======

    Weighted Average Common Shares
     Outstanding:

    Basic                           9,658,431               9,601,529

    Diluted                         9,693,434               9,678,950

    Earnings Per Share of Common
     Stock:

    Basic                                         $1.83               $1.55

    Diluted                                       $1.82               $1.54


                                                                                 Chesapeake Utilities Corporation and Subsidiaries

                                                                                 Condensed Consolidated Balance Sheets (Unaudited)

    Assets                                                                                                                                               March 31, 2014           December 31, 2013
                                                                                                                                                         --------------           -----------------

    (in thousands, except shares)

    Property, Plant and Equipment

    Regulated energy                                                                                                                                                     $697,725                   $691,522

    Unregulated energy                                                                                                                                           76,938                76,267

    Other                                                                                                                                                        21,129                21,002

    Total property, plant and equipment                                                                                                                         795,792               788,791

    Less:  Accumulated depreciation and amortization                                                                                                           (179,918)             (174,148)

    Plus:  Construction work in progress                                                                                                                         27,228                16,603

    Net property, plant and equipment                                                                                                                           643,102               631,246
                                                                                                                                                                -------               -------

    Current Assets

    Cash and cash equivalents                                                                                                                                     4,791                 3,356

    Accounts receivable (less allowance for uncollectible accounts of $1,976 and                                                                                 80,313                75,293
                                                                                                                                   $1,635, respectively)

    Accrued revenue                                                                                                                                              12,536                13,910

    Propane inventory, at average cost                                                                                                                            6,088                10,456

    Other inventory, at average cost                                                                                                                              3,728                 4,880

    Storage gas prepayments                                                                                                                                       1,323                 4,318

    Prepaid expenses                                                                                                                                              4,890                 6,910

    Income taxes receivable                                                                                                                                           -                 2,609

    Mark-to-market energy assets                                                                                                                                      -                   385

    Regulatory assets                                                                                                                                             4,342                 2,436

    Deferred income taxes                                                                                                                                         1,723                 1,696

    Other current assets                                                                                                                                            198                   160

    Total current assets                                                                                                                                        119,932               126,409
                                                                                                                                                                -------               -------

    Deferred Charges and Other Assets

    Investments, at fair value                                                                                                                                    2,951                 3,098

    Regulatory assets                                                                                                                                            66,395                66,584

    Goodwill                                                                                                                                                      4,625                 4,354

    Other intangible assets, net                                                                                                                                  2,875                 2,975

    Receivables and other deferred charges                                                                                                                        2,681                 2,856
                                                                                                                                                                  -----                 -----

    Total deferred charges and other assets                                                                                                                      79,527                79,867
                                                                                                                                                                 ------                ------

    Total Assets                                                                                                                                                         $842,561                   $837,522
                                                                                                                                                                         ========                   ========


                Chesapeake Utilities Corporation and Subsidiaries

                Condensed Consolidated Balance Sheets (Unaudited)

    Capitalization and                 March 31,             December 31,
     Liabilities                          2014                   2013
                                      ---------             -------------

    (in thousands, except
     shares and per share
     data)

    Capitalization

    Stockholders' equity

    Common stock, par value
     $0.4867 per share

    (authorized 25,000,000
     shares)                                        $4,715                  $4,691

    Additional paid-in
     capital                             152,862               152,341

    Retained earnings                    138,176               124,274

    Accumulated other
     comprehensive loss                   (2,502)              (2,533)

    Deferred compensation
     obligation                            1,138                 1,124

    Treasury stock                        (1,138)              (1,124)
                                          ------                ------

    Total stockholders'
     equity                              293,251               278,773

    Long-term debt, net of
     current maturities                  117,195               117,592

    Total capitalization                 410,446               396,365
                                         -------               -------

    Current Liabilities

    Current portion of
     long-term debt                       10,955                11,353

    Short-term borrowing                  83,470               105,666

    Accounts payable                      58,183                53,482

    Accrued compensation                   4,937                 8,394

    Accrued interest                       2,536                 1,235

    Dividends payable                      3,730                 3,710

    Income taxes payable                   8,955                    -

    Mark-to-market energy
     liabilities                               -                   127

    Regulatory liabilities                 7,071                 4,157

    Customer deposits and
     refunds                              24,405                26,140

    Other accrued
     liabilities                           8,934                 7,678

    Total current
     liabilities                         213,176               221,942
                                         -------               -------

    Deferred Credits and
     Other Liabilities

    Deferred income taxes                142,414               142,597

    Deferred investment tax
     credits                                  65                    74

    Regulatory liabilities                 4,178                 4,402

    Accrued asset removal
     cost -Regulatory
     liability                            40,007                39,510

    Environmental
     liabilities                           9,129                 9,155

    Other pension and
     benefit costs                        20,662                21,000

    Other liabilities                      2,484                 2,477

    Total deferred credits
     and other liabilities               218,939               219,215
                                         -------               -------

    Total Capitalization
     and Liabilities                              $842,561                $837,522
                                                  ========                ========


                                                                Chesapeake Utilities Corporation and Subsidiaries

                                                                Distribution Utility Statistical Data (Unaudited)

                                    For the Three Months Ended March 31, 2014                                     For the Three Months Ended March 31, 2013
                                    -----------------------------------------                                     -----------------------------------------

                           Delmarva NG    Chesapeake     FPU NG         FPU             Delmarva NG   Chesapeake       FPU NG            FPU
                                                                    Electric                                                        Electric
                         Distribution(2)  Florida NG    Distribution   Distribution        Distribution  Florida NG   Distribution   Distribution
                                            Division                                             Division
                                                                                                           ---                                 ---

    Operating Revenues

    (in thousands)
    -------------

    Residential                               $33,728               $1,437              $7,986                   $11,553                          $23,193               $1,336              $7,256              $9,980

    Commercial                    15,648                  1,233               9,564                     8,611                          10,047                 1,195               9,386               8,452

    Industrial                     1,536                  1,294               3,443                     1,432                           1,760                 1,278               3,295               1,728

      Other (1)                      290                    836                 655                    (3,288)                            221                   633             (1,674)             (1,634)
      --------                       ---                    ---                 ---                    ------                             ---                   ---              ------              ------

    Total Operating                           $51,202               $4,800             $21,648                   $18,308                          $35,221               $4,442             $18,263             $18,526
    Revenues

    Volume (in Dts/MWHs)
    --------------------

    Residential                2,158,586                136,657             484,158                    84,491                       1,649,772               126,837             447,216              69,775

    Commercial                 1,689,871                405,699             812,786                    71,804                       1,380,683               408,980             831,983              66,911

    Industrial                 1,174,193               3,728,145             1,116,381                     9,630                       1,130,541              3,916,816             1,203,790              11,220

    Other                          6,529                     -             (30,003)                   (12,366)                          5,652                    -             (34,316)               2,742
    -----                          -----                   ---             -------                   -------                           -----                  ---             -------               -----

    Total                      5,029,179               4,270,501             2,383,322                   153,559                       4,166,648              4,452,633             2,448,673             150,648

    Average Customers
    -----------------

    Residential                   62,705                 14,349              50,713                    23,816                          51,241                13,960              49,179              23,667

    Commercial                     6,601                  1,346               4,597                     7,416                           5,409                 1,275               4,631               7,391

    Industrial                       108                     61               1,039                         2                             101                    58                 844                   2

    Other                              7                     -                  -                        -                               3                    -                  -                  -
    -----                            ---                   ---                ---                      ---                             ---                  ---                ---                ---

    Total                         69,421                 15,756              56,349                    31,234                          56,754                15,293              54,654              31,060
    -----                         ------                 ------              ------                    ------                          ------                ------              ------              ------

     (1) Operating Revenues from "Other" sources include unbilled revenue, under (over) recoveries of fuel cost, conservation revenue, other miscellaneous charges, fees for billing services provided to third parties and adjustments for pass-through taxes.

     (2) Sandpiper is now included within the Delmarva NG Distribution results, which also includes the Delaware and Maryland Divisions.

SOURCE Chesapeake Utilities Corporation


Source: PR Newswire



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