<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>doc2.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
                                                                    EXHIBIT 99.1
[Chesapeake  Utilities
Corporation  Logo]



FOR  IMMEDIATE  RELEASE
MARCH  8,  2004
NYSE  SYMBOL:  CPK

          CHESAPEAKE UTILITIES CORPORATION REPORTS HIGHER 2003 EARNINGS
                      LED BY STRONG GROWTH IN MARGINS FROM
                  CORE GAS DISTRIBUTION AND PROPANE OPERATIONS


Dover,  Delaware  - Chesapeake Utilities Corporation (NYSE: CPK) today announced
results  for  the  twelve months ended December 31, 2003. Income from continuing
operations  was  $10.1  million  or  $1.76  (fully  diluted)  per share in 2003,
compared  to  $7.5  million  or  $1.37  (fully  diluted)  per share in 2002. The
improvement  in  results  reflects the benefits of strong customer growth in the
Company's  gas  distribution  business,  the  positive impact of colder weather,
which  led  to  higher  margins  in  the  Company's gas distribution and propane
businesses,  and the Company's cost containment efforts. 2003 net income of $9.3
million  or  $1.63  per  share  (fully  diluted) was more than two times the net
income  for  2002 of $3.7 million or $0.68 per share. The 2002 results reflect a
charge  related  to  a  change  in  accounting  principle  of  $0.35  per share.

During  2003,  Chesapeake  decided  to  exit  the  water  services business, and
consequently,  results  of water services have been reclassified to discontinued
operations.  Discontinued  water services operations experienced losses of $0.13
and  $0.34  per  share  (fully  diluted)  for 2003 and 2002, respectively. As of
December 31, 2003, the Company had nearly completed the execution of its plan to
exit  the  water  services  business  having sold the assets of six of its seven
water  services  dealerships.

"2003  results reflect the strength and growth potential of our core natural gas
and  propane operations, and the ability of our management team to implement our
strategic  plan,"  stated  John  R.  Schimkaitis,  President and Chief Executive
Officer  of  Chesapeake  Utilities  Corporation.  "These  results  highlight the
profitable margin growth in our core activities, and our success in executing on
our  plan to exit the water services business. Looking forward, we expect to see
continued strong growth in our natural gas and propane businesses, and expect to
complete  our  exit  from  the  water  services  business  during  2004."

RESULTS  FOR  THE  FOURTH  QUARTER
The  Company  reported  net  income  of  $2.7 million, or $0.48 per share (fully
diluted), for the fourth quarter of 2003, compared to $1.6 million, or $0.29 per
share  (fully  diluted) for the fourth quarter of 2002. Losses from discontinued
operations  for  the  fourth  quarters of 2003 and 2002 were $0.08 and $0.25 per
share, respectively. Income from continuing operations for the fourth quarter of
2003  improved  $205,000,  or  $0.02  per  share (fully diluted) over the fourth
quarter  of  2002.

This  improvement  reflects  better results in the advanced information services
segment, which increased operating income by $308,000 over the fourth quarter of
2002,  primarily  due  to  reduced  operating costs of $290,000. The natural gas
segment  experienced a decline of $299,000 in operating income compared to 2002.
This  decrease  was due to fourth quarter temperatures on the Delmarva Peninsula
that  were  11  percent  warmer  than  the  prior  year  (measured  in  heating
degree-days).  The  propane  segment  experienced a drop of $44,000 in operating
income.  An  improvement  of  $78,000  in  propane wholesale marketing operating
income  was  more than offset by a reduction of $122,000 in propane distribution
operating income. Warmer temperatures on the Delmarva Peninsula and a decline in
service  margins  in  Florida  contributed  to  the  decrease.

RESULTS  FOR  THE  YEAR  ENDED  DECEMBER  31,  2003
As  noted above, income from continuing operations increased 34 percent to $10.1
million  or  $1.76  per share (fully diluted) in 2003. This improvement resulted
from  higher  operating  income  from  each of the Company's operating segments.

The  natural  gas  segment  experienced  an increase in operating income of $1.7
million  for  2003  compared  to  2002. The increase in operating income was the
result  of  an improvement of $1,225,000 in the Delmarva distribution operations
and  an improvement of $938,000 in the Florida operations, partially offset by a
decrease of $504,000 in the natural gas transmission operation. Improved results
for  the  Delmarva  distribution operations were primarily driven by a 6 percent
increase  in  residential  customers  and  higher deliveries per customer due to
weather  that  was  13  percent  colder  than 2002 and 7 percent colder than the
ten-year  average.  The  improvement  in  Florida  distribution  operations  was
generated  by  a  4  percent  increase  in  residential  customers  and  the
implementation  of  transportation services. The decline in operating income for
the  Company's  transmission  operation  resulted  from  higher  general  and
administrative expenses that offset slightly higher margins. The higher expenses
were  payroll,  benefits,  outside  services  and  insurance  costs.

The  increase  in  propane  operating  income  of $2.8 million was primarily the
result of improvements in the Delmarva propane distribution operations. Delmarva
margins increased $2.9 million while the increase in operating expenses was held
to  $211,000.  Margins  were  up  due  to  increased  volumes  caused  by colder
temperatures  and  an increase in the average margin per gallon. Florida propane
operations  experienced a $65,000 decline in operating income, while the propane
marketing  operation  increased  operating  income by $177,000, primarily due to
lower  taxes  on  inventory  and  increased  margins.

Operating  income  for  the  advanced  information  services  segment  increased
$349,000 in 2003 compared to 2002. Although revenues for the segment declined by
$186,000,  cost  cutting initiatives put into place more than offset the revenue
decline  and  led  to  an  improvement  in results in this segment for the year.

The  Company  has restated its 2002 financial statements in order to reflect its
Delaware and Maryland natural gas divisions on the "accrual" rather than the "as
billed"  revenue  recognition  method.  The  Company's  Florida  division  has
historically used the "accrual" method in accordance with Florida Public Service
Commission  requirements.  The Delaware and Maryland divisions have historically
used  the  "as  billed"  method  to  recognize  revenues  consistent  with  the
rate-setting  processes in those states. This change, which had an insignificant
effect  on  the Company's annual results, reflects gas consumed by the Company's
customers  through  the  last  day  of the year as revenue. The Company has also
restated the fourth quarter of 2002. Finally, retained earnings as of January 1,
2002  will  be  increased  by  approximately  $668,000.



CONSOLIDATED  STATEMENTS  OF  INCOME
FOR  THE  PERIODS  ENDED  DECEMBER  31,  2003  AND  2002
DOLLARS  IN  THOUSANDS  EXCEPT  PER  SHARE  AMOUNTS

<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------
                                              --- FOURTH  QUARTER ---    ---- YEAR TO DATE -----
                                              -- 2003 --   -- 2002 --    -- 2003 --   -- 2002 --
                                                          RESTATED (1)               RESTATED (1)
-------------------------------------------------------------------------------------------------
<S>                                           <C>          <C>           <C>          <C>
OPERATING REVENUES . . . . . . . . . . . . .  $   45,105   $   41,462    $  162,298   $  134,143

OPERATING EXPENSES
   Cost of sales . . . . . . . . . . . . . .      26,985       23,566        94,680       73,000
   Operations. . . . . . . . . . . . . . . .       8,420        8,301        32,824       31,369
   Maintenance . . . . . . . . . . . . . . .         447          530         1,738        1,924
   Depreciation and amortization . . . . . .       1,795        1,790         7,090        7,089
   Other taxes . . . . . . . . . . . . . . .       1,204        1,036         4,387        4,156
-------------------------------------------------------------------------------------------------
 Total operating expenses. . . . . . . . . .      38,851       35,223       140,719      117,538
-------------------------------------------------------------------------------------------------
OPERATING INCOME . . . . . . . . . . . . . .       6,254        6,239        21,579       16,605

OTHER INCOME . . . . . . . . . . . . . . . .         175          128           238          495
-------------------------------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES . . . . . . .       6,429        6,367        21,817       17,100

INTEREST CHARGES . . . . . . . . . . . . . .       1,391        1,435         5,706        4,955
-------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES . . . . . . . . .       5,038        4,932        16,111       12,145

INCOME TAXES . . . . . . . . . . . . . . . .       1,820        1,919         6,032        4,610
-------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS. . . . . .       3,218        3,013        10,079        7,535

INCOME (LOSS) FROM DISCONTINUED
OPERATIONS, NET OF TAX
  Discontinued operations, net . . . . . . .        (522)      (1,416)         (799)      (1,898)
  Gain on sale, net. . . . . . . . . . . . .          47            -            12            -
-------------------------------------------------------------------------------------------------
Total net loss from discontinued operations.        (475)      (1,416)         (787)      (1,898)

CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE. . . . . . . . . . .           -            -             -       (1,916)
-------------------------------------------------------------------------------------------------
NET INCOME . . . . . . . . . . . . . . . . .  $    2,743   $    1,597    $    9,292   $    3,721
=================================================================================================

Average Shares Outstanding . . . . . . . . .   5,653,951    5,530,578     5,610,592    5,489,424

Earnings Per Share - Basic
---------------------------
From continuing operations . . . . . . . . .  $     0.57   $     0.54    $     1.80   $     1.37
From discontinued operations . . . . . . . .       (0.08)       (0.25)        (0.14)       (0.34)
Effect of change in accounting principle . .           -            -             -        (0.35)
-------------------------------------------------------------------------------------------------
Net Income . . . . . . . . . . . . . . . . .  $     0.49   $     0.29    $     1.66   $     0.68
=================================================================================================

Earnings Per Share - Diluted
----------------------------
From continuing operations . . . . . . . . .  $     0.56   $     0.54    $     1.76   $     1.37
From discontinued operations . . . . . . . .       (0.08)       (0.25)        (0.13)       (0.34)
Effect of change in accounting principle . .           -            -             -        (0.35)
-------------------------------------------------------------------------------------------------
Net Income . . . . . . . . . . . . . . . . .  $     0.48   $     0.29    $     1.63   $     0.68
=================================================================================================

<FN>
(1)  The  impact  of  the  restatement  on  2002  was  an increase of $42 thousand
     to Operating  Revenue, a decrease of $13 thousand to Gross Margin and Operating
     Income and a decrease of $8 thousand in  Net  Income.  There  was  no  impact
     on basic or fully diluted Earnings Per Share.

</FN>
</TABLE>


SUPPLEMENTAL  INCOME  STATEMENT  DATA
FOR  THE  PERIODS  ENDED  DECEMBER  31,  2003  AND  2002
DOLLARS  IN  THOUSANDS


<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------
                                              --- FOURTH  QUARTER ---    ---- YEAR TO DATE -----
                                              -- 2003 --   -- 2002 --    -- 2003 --   -- 2002 --
                                                          RESTATED (1)               RESTATED (1)
-------------------------------------------------------------------------------------------------
GROSS MARGIN (2)
<S>                                           <C>          <C>           <C>          <C>
   Natural Gas . . . . . . . . . . . . . . .  $   12,401   $   12,197    $   44,813   $   40,853
   Propane . . . . . . . . . . . . . . . . .       4,320        4,376        17,504       14,451
   Advanced Information Services . . . . . .       1,455        1,437         5,560        6,064
   Other . . . . . . . . . . . . . . . . . .         (56)        (114)         (259)        (225)
-------------------------------------------------------------------------------------------------
 TOTAL GROSS MARGIN. . . . . . . . . . . . .  $   18,120   $   17,896    $   67,618   $   61,143
=================================================================================================

OPERATING INCOME
   Natural Gas . . . . . . . . . . . . . . .  $    4,824   $    5,123    $   16,653   $   14,973
   Propane . . . . . . . . . . . . . . . . .         977        1,021         3,875        1,052
   Advanced Information Services . . . . . .         366           58           692          343
   Other . . . . . . . . . . . . . . . . . .          87           37           359          237
-------------------------------------------------------------------------------------------------
 TOTAL OPERATING INCOME. . . . . . . . . . .  $    6,254   $    6,239    $   21,579   $   16,605
=================================================================================================

HEATING DEGREE-DAYS
Actual . . . . . . . . . . . . . . . . . . .       1,484        1,675         4,715        4,161
10-Year Average. . . . . . . . . . . . . . .       1,574        1,572         4,409        4,393
-------------------------------------------------------------------------------------------------

<FN>
(1)  The  impact  of  the  restatement on 2002 was a decrease of $13 thousand
     to both Gross  Margin  and  Operating  Income.

(2)  "Gross  margin" is determined by deducting the cost of sales from operating
     revenue.  Cost  of  sales  includes  the  purchased  gas  cost  for
     natural  gas  and  propane and the cost of labor spent on direct
     revenue-producing  activities  for  advanced  information  services.  This
     should not be considered an alternative to operating income or  net
     income,  which  are  determined  in accordance  with  generally  accepted
     accounting  principles  ("GAAP").  Chesapeake  believes  that  gross
     margin,  although  a non-GAAP measure, is useful and meaningful to
     investors because it provides  them  with  valuable  information  that
     demonstrates the  profitability  achieved  by  the  Company  under its
     allowed rates for regulated  operations  and  under  its  competitive pricing
     structure  for  non-regulated  segments,  as  another  criteria  in  making
     investment  decisions.  Chesapeake's  management  uses gross  margin  in
     measuring certain performance goals and has historically analyzed  and
     reported  gross  margin  information  publicly. Other companies may
     calculate gross margin in a different manner.
</FN>
</TABLE>


Matters  discussed  in  this release 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 Cautionary Statement in
the  Company's  report  on  Form  10-K  for the year ended December 31, 2002 for
further  information  on  the  risks  and uncertainties related to the Company's
forward-looking  statements.

Chesapeake  Utilities  Corporation  is  a diversified utility company engaged in
natural  gas  distribution  and  transmission,  propane  gas  distribution  and
wholesale  marketing,  advanced information services and other related services.
Information  about Chesapeake's businesses is available on the World Wide Web at
www.chpk.com.
------------


For  more  information,  contact:
Michael  P.  McMasters
Vice  President  &  Chief  Financial  Officer
302.734.6799




</TEXT>
</DOCUMENT>
