Good morning. My name is Katlyn, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Chesapeake Utilities 2014 Third Quarter Earnings 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). Beth Cooper, you may begin your conference.

Thank you, Katlyn. And good morning everyone. Thank you for joining us this morning to review our third quarter and year-to-date results. We have prepared a presentation to accompany our discussion today. This presentation can be accessed on our website at chpk.com under the Investors section and Events & Web cast subsection or via our IR app. 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. The Safe Harbor for forward looking statements section of the company's 2013 Form 10-K provides further information on the factors that could cause such forward looking statements to differ from our actual results. Finally, please note that earnings per share data reflect the company's three-for-two stock split effective on September 8, 2014. Turning to Slide 3. Yesterday morning, we announced third quarter net income of $3.2 million or $0.22 per share. As reported, third quarter 2014 net income was $699,000 or $0.05 per share lower than 2013. However, 2013's results included the net impact of two nonrecurring items which increased last year's earnings by $0.05 per share. These nonrecurring items included a credit to other operating expenses for the recovery of certain litigation expenses partially offset by additional other non-income taxes. As you can see, excluding these items quarter-over-quarter, EPS was virtually unchanged. The results in the third quarter reflected two trends that we have foreshadowed for several quarters. Continued gross margin growth generated from natural gas service expansions and cost increases to support the growth. We typically report the lowest amount of gross margin in the third quarter due to the seasonal nature of our energy businesses. Consequently, the impact of cost increases associated with strengthening…

Thank you, Beth, and good morning, everyone. As Beth has highlighted, 2014 is shaping up to be another strong year for Chesapeake. Before moving on to Slide 12, I would like to say a few words about some of the items that differentiate us as a company and our ability to take advantage of the natural gas price advantage. We are fortunate to serve areas that have organic growth opportunities. But we are not resting on our laurels, but rather we are looking at opportunities beyond our existing service territories and offerings. We are continuing to strengthen our business development activities to expand our reach and capabilities to enhance our ability to grow. Many companies have service territories that have growth opportunities. Many others have far more resources to identify and development opportunities around the country. What separates us from those is that our team does remarkable job of identifying and developing growth opportunities in a disciplined manner and effectively manage regulation to produce superior returns to shareholders. This enables us to deliver clean, reliable, low cost energy to our customers and generate returns on capital that are above peer group medians and, therefore, access to capital necessary to continue our growth cycle. Turning to Slide 12. The environmental and economic advantages of natural gas continue to provide opportunities for the expansion of its use in our service territory and across the United States. Natural gas is an abundant, clean and affordable fuel, and the significant reserves we have here in United States provides security of supply and price. This is reflected in the comparison of energy prices on Slide 12, which shows that natural gas enjoys a significant price advantage compared to oil and is expected to maintain this advantage for the foreseeable future. This natural gas price advantage…

(Operator Instructions). Your first question comes from the line of Spencer Joyce from Hilliard Lyons. Your line is open.

Mike, Beth, good morning. Happy Friday.

Good morning, Spencer.

Good morning.

First off, congrats on a pretty solid quarter here despite the expense uptick and then specifically the Eight Flags and the rate case announcement in Florida, looks like things are humming right along. But on that the question side, I wanted to talk about the CapEx projection just for a second because if I remember correctly we saw a substantial spike and expectations about a quarter ago and then with this quarter we see that kind of ratchet back now to the $110 million, $111 million range. And I am wondering specifically what changed kind of over the past 90 days that would drive such a delta in the expected spend for this year?

Spencer, it’s really the timing of some of the projects that we had in that higher projection and some of that is -- most of that is now carrying over into our forecast for 2015. And that’s why we laid out before you. We don’t have the budget finalized yet; we’re in the process of doing that right now, but the spend next year will be equal to or greater than the level of spend that we’re talking about this year. So it’s really a carryover impact the timing of the projects.

Yes, it slipped by 90 days and it just kind of stuck with that second quarter. If it slides by 90 days it falls in the following year so.

So, would it be somewhat of a timing issue? And I am assuming kind of multiple projects here. Is it possible that we see perhaps outsized CapEx in Q1, Q2 next year or would it -- this trend follow more of your usual spending pattern?

I think what you’re going to see is you’re going to see increased spend in those first couple of quarters related to some of the projects that we will be pursuing. And there will be more information coming out about that at a later time.

Okay, fantastic. I think I got that piece. Also congrats on the BravePoint sale, I think most people were pretty happy to see that, I know it’s not a piece of the business we spend a lot of time on, but look forward to being able to put that capital kind of back into the core regulated side. But my question for either of you is can you kind of quantify what may be in trailing 12 results from the standpoint of BravePoint whether it would be their top line or operating expenses or even a net income number that may be kind of worked into forward estimates that maybe we should be backing out at this point?

Yes, trailing 12 months is about $300,000 loss actually for BravePoint. I guess the net income number.

Okay.

That’s just a slight loss.

Okay, got you. And you got a bit improving a little bit but I wasn’t sure if it was still kind of at a loss there.

I think our gross revenues are -- gross margin shows up somewhere in the documents.

Yes, but that’s on a year-to-date basis that’s out there but.

We can get to the, okay. We can get to the trailing 12.

Okay, great, great, yes. But if it’s roughly breakeven on the net income that’s probably most important piece too.

Yes.

That’s all I had. Again congrats on a pretty solid performance here in Q3 and we’ll talk soon.

All right, thanks, Spencer.

Thanks.

(Operator Instructions). There are no further questions at this time. I turn the call over to President and Chief Executive Officer Mike McMasters.

Thank you. We’re very excited about where we are right now as a company. We’re looking forward to executing on the opportunities we've been developing. I just want to thank everyone for spending time with us this morning and have a nice weekend. Thank you, bye.

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