CHESAPEAKE UTILITIES CORPORATION AND SUBSIDIARIES
EXHIBIT 11
COMPUTATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE
FOR THE QUARTER FOR THE SIX MONTHS
ENDED JUNE 30, (1) ENDED JUNE 30,
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1997 1996 1997 1996
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Primary earnings per share calculation:
Weighted average number of shares 4,486,966 4,428,860 4,481,467 4,414,307
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Consolidated net income $692,841 $486,311 $4,058,953 $6,486,468
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Primary earnings per share $0.15 $0.11 $0.91 $1.47
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Fully diluted earings per share calculation:
Weighted average number of shares 4,486,966 4,428,860 4,481,467 4,414,307
Contingent shares related to assumed
conversion of convertible debt 240,137 242,761 240,339 244,059
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Weighted average number of shares assuming
full dilution 4,727,103 4,671,621 4,721,806 4,658,366
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Adjusted net income
Consolidated net income $692,841 $486,311 $4,058,953 $6,486,468
Interest on convertible debt 84,030 84,715 167,275 170,338
Less: Applicable federal income taxes (32,772) (33,039) (65,237) (66,432)
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Adjusted net income $744,099 $537,987 $4,160,991 $6,590,374
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Fully diluted earnings per share $0.16 $0.12 $0.88 $1.41
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(1) This calculation is submitted in accordance with Regulation S-K item
601(b)(11), although it is contrary to paragraph 40 of APB Opinion
No. 15, because it produces an anti-dilutive result for the quarters
ended June 30, 1997 and 1996.