Acquisition

6 Months Ended

Jun. 30, 2012

Acquisition [Abstract]

Acquisition

3. Acquisition

On June 22, 2012, we entered into an agreement to purchase the operating assets of The Eastern Shore Gas Company and its affiliates, Eastern Shore Propane Company, LLC and Eastern Gas & Water Investment Company, LLC (collectively, “ESG”). These assets are currently used to provide propane distribution service to approximately 11,000 residential and commercial customers through underground propane gas distribution systems and bulk propane delivery service to over 500 customers in Worcester County, Maryland. We are evaluating the potential conversion of some of these underground propane distribution systems to natural gas where it is both economical and feasible. The transaction is subject to approval by the Maryland Public Service Commission (“PSC”), the receipt of consents of certain local jurisdictions to the assignment of certain franchise agreements and satisfaction of other closing conditions. The transaction, which is a cash purchase of assets, is expected to be completed in the fourth quarter of 2012. We expect to finance the acquisition using unsecured short-term debt.