Good morning, everyone. My name is Sarah, and I will be your conference operator today. At this time, I'd like to welcome you all to the Chesapeake Utilities Third Quarter Results Conference Call. [Operator Instructions] Thank you. I would now like to turn the call over to our host, Ms. Beth Cooper, Senior Vice President and Chief Financial Officer. You may begin your conference.

Thank you. Good morning, and welcome to the Chesapeake Utilities' third quarter 2012 Earnings Conference Call. Before we begin, let me remind you that matters discussed in this conference call 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 annual report and Form 10-K for further information on the risks and uncertainties related to the company's forward-looking statements. Now, I'll turn the call over to Mike McMasters, President and Chief Executive Officer.

Thanks, Beth, and good morning, everyone. Yesterday, we announced a 32% increase in diluted earnings per share for the third quarter of 2012. Our results from the third quarter of 2012 included net income of $3.2 million and earnings per share of $0.33. These strong results represent an increase of $822,000 in net income and $0.08 in earnings per share over the third quarter 2011. The increased financial results reflect higher profitability in all segments of the company. These results continue to show the strong growth in our core businesses and the success of our employees in transforming opportunities into growth that generates value for our shareholders and customers. Beth will provide a more detailed discussion on the financial results after I highlight the results in each of our segments. The regulated energy segment continues to take a long term strategic approach toward extending our natural gas systems to customers and communities. We have been successfully adding new commercial and industrial customers that have significant energy requirements that can be served with natural gas. This has been done by extending our distribution and transmission services to areas where natural gas was previously not available. Since November of 2011, we have extended service to the different parts of Sussex County, Delaware, Worcester County, Maryland and Nassau County, Florida. These expansions accounted for $1 million of additional gross margin during the third quarter of 2012. For the year-to-date, gross margin from these expansions has totaled $2.4 million, with another $1.1 million expected in the fourth quarter. Going forward, these expansions are expected to generate annual margin of $4.4 million. Offsetting this $4.4 million is $800,000 of costs we will start incurring once the joint pipeline being constructed to permanently serve Fernandina Beach is completed and in service. In addition, during the third…

Thanks, Mike. As Mike indicated, we were pleased to report strong results for the third quarter of 2012. For the quarter, consolidated operating income increased by $2 million to $7.6 million as each of the company's segments reported increased results. Detailed discussions of the changes in gross margin and operating expense by reporting segment for the quarter and 9 months ended September 30 of 2012 are provided in our press release and Form 10-Q, which were filed yesterday. However, I will highlight the key accomplishments and results for the business units during the third quarter of 2012. Chesapeake's regulated energy businesses, which include our natural gas transmission and distribution and electric distribution operations, generated operating income of $7.8 million for the third quarter of 2012, up from $6.9 million in the same quarter of 2011. Additional gross margin generated by our natural gas expansion initiatives in Sussex County, Delaware; Worcester County, Maryland and Nassau County, Florida, increased gross margin by $1 million during the third quarter. Gross margin from other new transmission services and distribution customer growth increased by $719,000 during the quarter. Increased consumption by existing customers also contributed $323,000 in additional margin during the third quarter of 2012. A rate increase at Eastern Shore Natural Gas Company accounted for the remainder of the increase in margin. Operating expenses for our regulated energy segment increased by $1.4 million in the third quarter of 2012 due to amortization expense associated with the Florida Public Utilities acquisition adjustment, higher depreciation expense due to increased capital investment and higher costs associated with increasing our capacity to support future growth. Mike highlighted our major expansion projects. Margin from these additions is expected to total approximately $3.5 million for 2012 and generate annualized margin of approximately $4.4 million going forward. Additionally, the company has…

[Operator Instructions] Your first question comes from a participant whose information has not been captured.

It's Spencer at Hilliard Lyons. A couple of oddball questions here. First one on the unregulated energy side. If we look at the year-to-date through September, the gross margin there, we're down a few million from the prior year, which is pretty understandable with the weather. But my question is in sort of a base case scenario, I'm assuming that the prior year 2011 is probably a little bit closer to a normal year. Would that be a correct assessment there?

Yes. You're correct, Spencer.

Okay, good. Second question, Eastern Shore gas. Have you all disclosed any of the more granular financial details of that purchase, specifically a cost there or price tag?

There is a filing made with the Maryland Public Service Commission. It does have some of that information, Spencer. I, off the top of my head, don't recall the docket number but we can get you some information on the docket number and you can access that online.

Okay, yes. That would be great. And then a final question sort of pertaining to that Eastern Shore gas. We talked a time or two about the conservative debt position that you all are in. I guess, question would be, is there a certain cap on debt that you all would look to go to? Or, I don't want to ask outright, would you do equity for the Eastern Shore gas, but any sort of color on those point?

I think it's fair to say that we don't have an equity offerings in our forecast for the Eastern Shore Gas. I should mention we're very strong, Eastern Shore Gas -- I don't recall the number, exact number. Beth, you may recall it.

It's right about $16.5 million, $16 million to $16.5 million.

So it's not going to move that capital structure a lot.

Your next question comes from Michael Gaugler of Brean Capital. Michael E. Gaugler - Brean Murray, Carret & Co., LLC, Research Division: I'm also kind of follow up to some of the questions you've already been asked. I'm taking a look specifically at the Commonwealth pipeline and how that's looking to tie into your system. I'm wondering if you can provide any color as to how you're thinking about that opportunity and where that project could eventually go longer-term?

Well, I guess, the Commonwealth pipeline is a project being developed, by my recollection, 3 different parties, and they continue to work on that project. And we have expressed an interest in becoming a customer and we have not, at this stage of the game, signed any firm commitments in that regard. So it's still in the process of evaluation on our part. And as you know, there are basically projects intending to move Marcellus Shale gas south from the production area, potentially down into the Baltimore, Washington area, et cetera. So that's, at this the stage, the only information that I have. Michael E. Gaugler - Brean Murray, Carret & Co., LLC, Research Division: I was just wondering if there were any opportunities for you to perhaps tie in with that pipeline and perhaps actually even provide some transportation of that gas further south for them in lieu of them perhaps filling up the pipeline or taking it a different direction themselves.

That would obviously be something would be attractive to us. I think that their plans are to do that themselves, but obviously, that would be something that would be attractive to us. Our pipeline is already in existence. We're on the Eastern Shore Maryland and Delaware, so that would be effectively moving south but I think that's not really what you're talking about. But in any event -- but it would be obviously, for me, a great accomplishment to do that.

[Operator Instructions] Your next question comes from John Hanson of Praesidis.

Just a quick one on a minor item. You mentioned that on BravePoint that you were doing some investing or something along those lines. Can you talk a little bit about that, in just kind of order of magnitude as to what we're talking about there?

I think, actually, what we were talking about was in the case of BravePoint, they have this year been very, very successful in terms of, whether it would be ProfitZoom or Application Evolution, in the sales that they've accomplished there. And they're in the process of completing several more transactions by the end of the year. And I think that's really -- as they came across this investment, it's really that we're fulfilling the contracts and the commitments that we have out there.

There are no further questions queued up at this time. I will turn the call back over to presenters.

Thanks, everyone for joining in on the conference call this morning. And we look forward to talking to you next quarter. Thank you very much.

Thank you.

Bye.

This concludes today's this conference call. You may now disconnect.