Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) today announced financial results for the three months ended September 30, 2009. The Company generated net income of $308,000, or $0.04 per share (diluted), for the third quarter of 2009, compared to a net loss of $198,000, or $0.03 per share (diluted), for the third quarter of 2008. The Company’s Delmarva natural gas distribution and propane distribution operations typically experience seasonal losses or reduced earnings during the third quarter because customers do not require natural gas or propane for heating purposes during the summer months. The results for the third quarter of 2009 included the effect of deferring as a regulatory asset certain merger-related transaction costs, which the Company will seek to recover in subsequent rate proceedings. Absent the effects of the merger-related costs and related income taxes, the Company would have generated net income of $78,000, or $0.01 per share (diluted), for the quarter ended September 30, 2009. The improved period-over-period results primarily reflect customer growth and new transportation services on the Delmarva Peninsula, implementation of new rate structures in Delaware that reduce seasonal fluctuations on gross margin, and lower cost of propane for the propane distribution operations from the absence of inventory valuation adjustments, including a loss on a propane swap agreement, recorded during the third quarter of 2008 and which did not recur in 2009.

The Company generated net income of $9.7 million for the nine months ended September 30, 2009, or $1.40 per share (diluted), compared to net income of $9.2 million, or $1.34 per share (diluted) for the same period in 2008. The results for the nine months ended September 30, 2009 and 2008 include $530,000 and $1.2 million in merger-related costs that are not subject to recovery through future rates. Excluding the effects of merger-related costs and related income taxes, net income for the nine months ended September 30, 2009, would have been $10.2 million, or $1.46 per share (diluted), compared to $9.9 million, or $1.44 per share (diluted), for the same period in 2008. The increased year-to-date earnings primarily reflects customer growth, new transportation services on the Delmarva Peninsula, increased retail margins by the propane distribution operations, spot sale opportunities executed by the natural gas marketing operations and weather on the Delmarva Peninsula that was eight percent colder in 2009. These positive achievements were partially offset by reductions in gross margin in the advanced information services and propane wholesale marketing operations, resulting from lower demand and adverse market conditions.

“Continued customer growth, expansion of services, and lower cost of propane on the Delmarva Peninsula helped us deliver improved results for the quarter, despite a challenging economy in Florida and difficult market conditions for the advanced information services segment. With the improved performance of our Delmarva businesses, together with our effort towards the completion of our Florida rate proceedings and the additional cost containment measures for our advanced information services segment, we are well-positioned to complete another successful year,” stated John R. Schimkaitis, President and Chief Executive Officer of Chesapeake Utilities Corporation. “We are excited about the closing of our merger with Florida Public Util