CHESAPEAKE UTILITIES CORPORATION AND SUBSIDIARIES EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the Years Ended December 31, -------------------------------------------------------------------- 1996 1995 1994 --------------------- --------------------- ------------------- Income from continuing operations $6,910,428 $7,236,695 $4,459,922 Add: Income taxes 4,030,725 4,131,177 2,542,368 Portion of rents representative of interest factor 170,530 182,211 187,012 Interest on indebtedness 2,656,606 2,666,223 2,637,654 Amortization of debt discount and expense 120,345 109,399 103,859 --------------------- --------------------- ----------------- Earnings as adjusted $13,888,634 $14,325,705 $9,930,815 ===================== ===================== ================= Fixed Charges Portion of rents representative of interest factor $170,530 $ 182,211 $ 187,012 Interest on indebtedness 2,656,606 2,666,223 2,637,654 Amortization of debt discount and expense 120,345 109,399 103,859 --------------------- --------------------- ----------------- Fixed Charges $2,947,481 $2,957,833 $2,928,525 ===================== ===================== ================= Ratio of Earnings to Fixed Charges 4.71 4.84 3.39 ===================== ===================== =================