Chesapeake Utilities Corp. continues to benefit from the shift toward natural gas. The Dover company’s net income for the quarter ended June 30, 2013 was $4.4 million a decrease of $704,000 from the second quarter of last year. The decline was based, in part, on a charge related to the acquisition of a gas utility.
However, for the the six months ended June 30, the company reported net income of $19.2 million. This represents an increase of $3.4 million compared to the same period in 2012.
“Our financial results for the second quarter reflect both continued growth and continued investment in our businesses,” stated Michael P. McMasters, CEO. “In 2012, we extended natural gas transmission service to Worcester County, Maryland, and in May 2013, we completed the purchase of the operating assets of Eastern Shore Gas Company (“ESG”) and its affiliates in Maryland.
Through our new wholly-owned subsidiary, Sandpiper Energy, Inc., we began serving approximately 11,000 residential and commercial underground propane system customers acquired in this transaction using new tariff rates approved by the Maryland Public Service Commission,” McMasters noted.
“In May 2013, Eastern Shore Natural Gas Company (“Eastern Shore”), our interstate pipeline subsidiary, commenced new services to a Dover electric generation plant owned by NRG Energy Center Dover LLC (“NRG”) and additional services to the PBF Energy Inc. refinery in Delaware City. Additionally, although there is no financial impact in the current quarterly results, in June 2013, Eastern Shore filed an application with the Federal Energy Regulatory Commission (“FERC”) seeking approval to construct a pipeline lateral to the electric generation plant owned by Calpine Energy Services, L.P. and currently under construction in Dover,”McMasters stated.
The utility also beefed up its corporate staff as it looks for growth opportunities as demand for natural gas increases.
