Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) today announced increased financial results for the quarter ended June 30, 2010. The Company’s net income for the quarter ended June 30, 2010 was $3.3 million, or $0.35 per share (diluted), an increase of $2.5 million, or $0.23 per share (diluted), compared to $806,000, or $0.12 per share (diluted), for the quarter ended June 30, 2009. The increased results for the second quarter of 2010 included $1.8 million of net income recorded by the Company’s new subsidiary, Florida Public Utilities Company (“FPU”), as a result of the merger on October 28, 2009. Additionally, the results for the second quarter of 2010 reflected a decrease in merger-related costs of $1.0 million ($599,000 net of tax), compared to the second quarter of 2009. Quarterly results for Chesapeake’s legacy businesses reflect continued growth and expansion of the natural gas distribution and transmission operations on the Delmarva Peninsula, a rate increase in Chesapeake’s Florida division and improved results from the advanced information services business. These increases were partially offset by a decline in volumes and margins from the propane businesses.

The Company’s net income for the six months ended June 30, 2010 was $17.3 million, or $1.82 per share (diluted), an increase of $7.9 million, or $0.46 per share (diluted), compared to $9.4 million, or $1.36 per share (diluted), for the same period in 2009. The increased results for the six months ended June 30, 2010 included $6.2 million of net income recorded by FPU. Also, the results for the six months ended June 30, 2010 reflected a decrease in merger-related costs of $1.1 million ($655,000 net of tax), compared to the same period in 2009. The year-to-date results from Chesapeake’s legacy businesses reflect the strong performance by the regulated energy businesses as a result of continued growth and expansion on the Delmarva Peninsula, the benefits of the Florida division rate increase and improved results from the advanced information services business.

“Our strong results in the second quarter and year-to-date reflect both the success of our team in integrating the Chesapeake-FPU merger, as well as the significant growth in our Delmarva natural gas distribution and transmission businesses,” stated John R. Schimkaitis, Vice Chairman and Chief Executive Officer of Chesapeake Utilities Corporation. “We remain optimistic about achieving and exceeding our goal of accretion from the merger in the first year after closing. Additionally, we remain excited about the potential for future growth given the continued integration and the opportunities for growth across our lines of business.”

The discussions of the results for the periods ended June 30, 2010 and 2009, 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 Supplemental Income Statement Data chart below. In addition, certain information is presented, which, for comparison purposes, includes only FPU’s results of operations for the periods ended June 30, 2010 and, in some cases, FPU’s results for the same periods in 2009, which was prior to the merger. Certain other information is presented, which, for comparison purposes, excludes results of operations of FPU from the consolidated results of operations and all merger-related costs incurred in connection with the FPU merger for the periods presented. Although non-GAAP measures are not intended to replace the GAAP meas