Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK; the “Company” or “Chesapeake”) today announced increased financial results for the year and quarter ended December 31, 2009. The Company’s net income for the year ended December 31, 2009 was $15.9 million, or $2.15 per share (diluted), an increase of $2.3 million, or 17 percent, compared to $13.6 million, or $1.98 per share (diluted), for the year ended December 31, 2008. The Company’s increased results for 2009 included approximately $1.8 million in net income generated from Florida Public Utilities Company (“FPU”) since the consummation of the merger on October 28, 2009, and approximately $1.5 million in merger-related costs expensed during 2009. The Company’s results for 2008 included approximately $1.2 million in costs associated with initial merger discussions with FPU that were terminated in 2008. Absent the effects of the merger, the Company’s net income for 2009 would have been $15.3 million, or $2.20 per share (diluted), compared to $14.3 million, or $2.08 per share (diluted), for 2008, representing seven percent growth. Among the factors contributing to the strong performance in 2009 were additional margins generated by the natural gas transmission operations from service expansions, increased spot sale opportunities executed during 2009 by the natural gas marketing operation, and higher propane margins as a result of lower propane costs during the first half of 2009 and the absence of propane inventory and swap valuation adjustments of $1.8 million recorded in late 2008.

For the three months ended December 31, 2009, net income was $6.2 million, or $0.71 per share (diluted), an increase of $1.8 million, or 40 percent, compared to $4.4 million, or $0.64 per share (diluted), for the same period in 2008. Absent the effects of the merger described above, the Company’s net income for the fourth quarter of 2009 would have been $5.1 million, or $0.73 per share (diluted), compared to $4.4 million, or $0.64 per share (diluted), for the same period in 2008, representing 15 percent growth. The increased results were achieved from additional margins generated by the natural gas transmission operations from service expansions, increased spot sales by the natural gas marketing operation, and the absence of propane inventory and swap valuation adjustments.

“Our strong performance in 2009 reflects continued successful execution of our growth strategy. In addition to the positive initial results from the integration of Chesapeake and Florida Public Utilities, our regulated businesses continued to achieve growth by capturing new commercial and industrial customers, despite the challenging economic climates on the Delmarva Peninsula and in Florida, while our unregulated businesses increased earnings from sustained retail prices and spot sale opportunities we identified during the year,” stated John R. Schimkaitis, Vice Chairman and Chief Executive Officer of Chesapeake Utilities Corporation. “Looking ahead, we expect to see continued benefits from our integration of Chesapeake and Florida Public Utilities Company, the positive outcome of our two Florida rate proceedings in December 2009, and the expansion of Eastern Shore’s facilities that was completed in November 2009.”

The discussions of the results for the periods ended December 31, 2009 and 2008, use the term “gross margin,” a non-Generally Accepted Accounting Principle (“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 excludes for comparison purposes, results of operations of FPU for the period from the date of the merger (October 28, 2009) to December 31, 2009 and all merger-related transaction costs incurred in connection with the FPU merger. Although non-GAAP measures are not intended to replace the GAAP measures for evaluation of Chesapeake’s performance, Chesapeake believes that the portions of the presentation, which exclude the merger-related impacts provide a helpful comparative basis for investors to understand Chesapeake’s