Good morning. My name is Mariana and I will be your conference operator today. At this time, I would like to welcome everyone to the Chesapeake Utilities Second Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. Senior Vice President and Chief Financial Officer, Beth Cooper, you may begin your conference.

Thank you and good morning, everyone. We appreciate you joining us this morning to review our second quarter and year-to-date 2015 results. Joining me on the call today with prepared remarks is Mike McMasters, President and CEO. We also have several additional members of our management team here with us today to answer questions following prepared remarks. The presentation to accompany our discussion today can be accessed on our website at www.chpk.com under the Investor section and Events and Webcast subsection or via our IR app. Moving to Slide 2, before we begin, let me remind you that matters discussed in this conference call may include forward-looking statements that involve risks and uncertainties. Forward-looking statements and projections could differ materially from our actual results. The Safe Harbor for forward-looking statements section of the company’s 2014 Annual Report on Form 10-K, provides further information on the factors that could cause such statements to differ from our actual results. Finally, please note that earnings per share data, is shown on a fully diluted basis and reflects the company’s 3-for-2 stock split effective September 8, 2014. While second quarter results are typically lower due to the seasonality of our regulated and unregulated energy business segments, we are pleased to report quarter-over-quarter increases in net income and earnings per share driven by continued strong growth in our regulated energy distribution and natural gas transmission businesses. We also continue to execute on our strategic growth plans. On April 1, we closed on the acquisition of Gatherco. During the quarter, we made significant progress in our integration of Gatherco, which we have re-branded as Aspire Energy of Ohio. We are also continuing to develop and cultivate profitable growth opportunities in our natural gas and propane businesses across Delmarva and in Florida. Our Florida Gas Reliability Infrastructure…

Thank you, Beth. Good morning, everyone. As we have previously discussed, we update our strategic plan every year. We ask our business unit leaders to engage our employees to figure out ways to go at rates faster than they could if they simply continued to do what they are doing today. As reflected on Slide 11, we are continuing to the implementation of our aggressive growth strategy. This slide summarizes the largest projects and acquisitions that are contributing to our growth in 2015. The recent Gatherco acquisition, now Aspire Energy, contributed approximately $1.6 million in margin during the second quarter, as expected to contribute approximately $8.8 million in 2015. The expansions to provide new services to transmission customers in New Castle and Kent Counties, Delaware and Polk County, Florida added $919,000 in gross margin during the second quarter of 2015 and $2.4 million of gross margin during the first six months of 2015. For the full year of 2015, these expansions are expected to generate gross margin of $5.3 million, an excess of the margins that they generated last year. We expect to spend about $29 million on the GRIP safety program during 2015. The increase in margin contribution from the GRIP program for the second quarter and first six months of 2015 were $1.1 million and $1.8 million, respectively. Turning to Slide 12, on April 1, 2015 we completed the acquisition of Gatherco and merged the company into our newly formed subsidiary, Aspire Energy of Ohio, LLC. The enterprise value net of cash acquired was $52.8 million. Aspire operates 16 gathering systems and over 2,400 miles of pipeline in the areas in and around the Utica Shale in Eastern and Central Ohio. The company serves more than 300 producers with gathering and liquids processing services and also delivers natural…

[Operator Instructions] Your first question comes from the line of Michael Gaugler from Janney Montgomery. Your line is open.

Good morning everyone.

Good morning Mike, how are you doing?

Good morning.

Just one question Mike, on the White Oak mainline expansion project, the 7 miles or so, 16-inch pipe that’s going to loop in Chester County, does that actually in Chester County open up any other opportunities for further service expansions in the region perhaps maybe a little more in Pennsylvania versus Delaware or both?

Well, I guess every time – generically, I guess, Mike, every time we extend a pipeline facility somewhere there are some opportunities that get opened up. We haven’t identified as we speak here today any opportunities along that section of pipe.

Okay. Just notice where that’s probably going to cross and figure there might be something else behind it in terms of expansions?

Yes. We do look for those, Mike, so...

Okay, thanks.

Your next question comes from the line of Roger Liddell from Clear Harbor Asset Management. Your line is open.

Thank you and good morning.

Good morning, Roger.

I wanted to follow-up with a question on combined heat and power opportunities in Florida. And of course, Eight Flags looks to be a superb example of those opportunities. And I wanted to put it in the context of there is some nuclear construction underway in South Carolina and Georgia. And my recollection is that Turkey Point is still assumed to be built in Southern Florida. The most recent publicity I have seen on Georgia Power’s Plant Vogtle 3 and 4 is that the dates and budgets are almost unknowable. And assuming the last published figures on budget and on completion dates holds, which I think is highly unlikely. The present value of continuing the construction and benefit over the lifetime of Plant Vogtle versus just stopping now and going gas that benefit of continuing nuclear eroded at almost 40% in the last year. So, here it is close to Florida, what could be a startling example of the questions, the issues of pursuing nuclear, which takes us to Turkey Point and it maybe that those plants wind up being canceled out of common sense and prudence. So, I should think the opportunities in Florida for meaningful rollout of additional combined heat and power could be an even more attractive opportunity. Could you respond to that?

I would say, Roger, we agree with that. The opportunity on Amelia Island was one. There is multiple opportunities that we see in the southeastern part of the country and we are looking at those – and they are, as you know, very complex, at least from our perspective, they are complex to develop and to some degree, you have to be careful with what’s the economic situation given the replacement power cost, but we are optimistic about that and are looking at opportunities for combined heat and power more than one. So, this project actually has opened up, has caught some people’s attention. I think we are cautiously optimistic that we will be able to get something develop. It will take some time. I suspect this project in particular that we are doing took several years to come to a contractual agreement and then obviously some permitting etcetera and then finally construction. So, there will be a long lead time on these projects.

Well, fair enough. But if you think they are complex, how would you like to be building nuclear?

That would be, I would agree, multiple increased complexity.

Yes. Well, I understand your point of the lead times and the caution that you have demonstrated before you go after these opportunities. I appreciate that. I guess you are not in a position to throw goals or aspirations out there perhaps in the future call you would be able to do so but I remain optimistic on the opportunity for the company?

Yes. If we – as we move down this road, if there comes a point where we may, we have multiple opportunities that were close to and maybe able to put some sort of expectation out there. But right now, it’s we are talking about multiple opportunities, but we are not at a place where we are getting to a point where it’s even 50% probable, I would say.

Fair enough. Thank you.

You are welcome.

[Operator Instructions] Your next question comes from the line of John Hanson from Praesidis. Your line is open.

Good morning.

Good morning, John.

Good morning.

Just a quick question, you mentioned the CapEx was going to slide from ‘15 to ‘16, what kind of projects are we sliding?

In particular, John, some of those projects that we talked about, for example, the Eight Flags project in total, that’s a project. The capital cost is about $40 million. We expect to incur about $28 million of that this year, but there will be a chunk that moves into next year. And in our original capital budget, more of that was actually falling into the current year. Similarly, some of the other larger projects that we are looking at that necessarily, they haven’t been finalized. The timeline on some of those have also slipped. So, from our standpoint, its expansion projects that we are trying to look at, those that are both announced as well as those that are in the pipeline as well as – there maybe a few dollars as it relates to the Calpine project, those types of things that may move from year-to-year.

And some of that, John, is driven by permitting and regulatory timelines, expanding here more recently.

On the Eight Flags project, it is still targeting that in service July next year?

Yes.

Okay. Alright, thanks.

Yes.

There are no further questions at this time. I would like to turn the call back over to President and CEO, Mike McMasters.

Thank you everyone for joining us on our call today and for your interest in Chesapeake Utilities. We are proud of what our team has accomplished for shareholders in the past and we are committed to working hard to deliver superior shareholder results in the future. Thank you.

Thank you.

This concludes today’s conference call. You may now disconnect.