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Middlesex Water Company Reports Financial Results for Second Quarter

Middlesex Water Company Reports Financial Results for Second Quarter

Net Income up 20%

ISELIN, N.J., Aug. 2, 2013 (GLOBE NEWSWIRE) -- Middlesex Water Company
(Nasdaq:MSEX) ("Middlesex" or the "Company") today reported net income for the
quarter ended June 30, 2013 of $4.5 million as compared to $3.7 million for
the same period in 2012. Basic and diluted earnings per share were $0.28, up
from $0.23 in 2012. For the six months ended June 30, 2013, net income
increased to $7.7 million as compared to $5.5 million for the same period in
2012.

Highlights

  *Consolidated Operating Revenues up 6.2%
  *Net Income up 20.3%
  *Diluted Earnings Per Share up 21.7%

Second Quarter Operating Results

Operating revenues for the three months ended June 30, 2013 increased $1.7
million or 6.2% to $29.1 million as compared to $27.4 million for the same
period in 2012. Revenues in the Company's Middlesex system in New Jersey
increased $1.3 million, primarily due to $0.8 million in increased sales to
General Metered Service (GMS) customers and increased contract sales of $0.4
million; both which were driven by the implementation of a base water rate
increase in July 2012. These increases were tempered by the effect on outdoor
water use of greater than expected precipitation during the second quarter of
2013 and Hess Corporation, Middlesex's largest GMS customer, ceasing oil
refining operations at its Port Reading, New Jersey facility in February 2013.

In our Delaware system, which includes Tidewater Utilities, Inc.
("Tidewater"), revenues decreased $0.2 million, primarily due to lower
customer demand resulting from greater than expected precipitation during the
second quarter of 2013. This was partially offset by increased fees for new
water customer connections and the June 2012 implementation of the final
component of a base rate increase. Interim rates had been in effect since
November 2011.Our non-regulated contract with the Borough of Avalon, New
Jersey for the operation of its water utility, sewer utility and storm water
system, which commenced July 1, 2012, yielded additional revenues of $0.4
million.

Operation and maintenance expenses for the three months ended June 30, 2013
increased $0.4 million from the same period in 2012.This was primarily due to
increased labor costs of $0.4 million related to lower capitalized payroll,
increased overtime expended on emergency repairs and higher average labor
rates. In addition, increased water treatment costs of $0.3 million as a
result of increased precipitation and $0.1 million in higher expenses related
to water main break repairs were incurred.Employee benefit expenses increased
$0.1 million, due primarily to lower capitalized benefits. These increases,
however, were offset by lower costs of $0.6 million due to an amendment to our
postretirement medical benefits plan. This amendment increases contributions
required by future retirees.

Middlesex Chairman, President and Chief Executive Officer Dennis W. Doll said,
"We were pleased to report positive financial results despite the cessation of
operations by our largest retail customer. We continue to be diligent about
controlling expenses while investing in our infrastructure and focusing on
opportunities to grow our business in New Jersey, Delaware and beyond. Our
operating contract with the Borough of Avalon is but another prime example of
our ability to meet the needs of municipal clients and manage systems outside
our traditional geographic service area," added Doll.

Six Month Operating Results

Consolidated operating revenues for the six months ended June 30, 2013
increased $5.2 million to $56.1 million from the same period in 2012 due
mostly to base rate increases and our operating contract with the Borough of
Avalon.

For the six months ended June 30, 2013, basic and diluted earnings per share
increased to $0.48 and $0.47 respectively, as compared to $0.35 for the same
period in 2012.

Company Quarterly Dividend

The Company's Board of Directors declared a quarterly cash dividend of $0.1875
per share, payable September 3, 2013 to common shareholders as of August 15,
2013.The Company has paid cash dividends in varying amounts continually since
1912 and has increased the dividend for 40 consecutive years.Middlesex Water
has a Dividend Reinvestment Plan under which dividends and optional cash
payments can be used to purchase additional shares of Common stock.

About Middlesex Water Company

Middlesex Water Company is a provider of water, wastewater and related
services, primarily in New Jersey and Delaware. Organized in 1897, the Company
provides regulated and unregulated water and wastewater utility services
through various subsidiary companies. For additional information regarding
Middlesex Water Company, visit the Company's Web site at
www.middlesexwater.com or call (732) 634-1500.

This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including, among others, our
long-term strategy and expectations, the status of our acquisition program,
the impact of our acquisitions, the impact of current and projected rate
requests and the impact of our capital program on our environmental
compliance. There are important factors that could cause actual results to
differ materially from those expressed or implied by such forward-looking
statements including: general economic business conditions, unfavorable
weather conditions, the success of certain cost containment initiatives,
changes in regulations or regulatory treatment, availability and the cost of
capital, the success of growth initiatives and other factors discussed in our
filings with the Securities and Exchange Commission.

                                                              
MIDDLESEX WATER COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands except per share amounts)
                                                              
                      Three Months Ended June 30, Six Months Ended June 30,
                      2013           2012          2013          2012
                                                              
Operating Revenues     $29,102      $27,401     $56,140     $50,947
                                                              
Operating Expenses:                                            
Operations and         15,148         14,765        30,578        29,140
Maintenance
Depreciation           2,725          2,582         5,434         5,130
Other Taxes            3,058          2,844         6,092         5,590
                                                              
Total Operating        20,931         20,191        42,104        39,860
Expenses
                                                              
Operating Income       8,171          7,210         14,036        11,087
                                                              
Other Income                                                   
(Expense):
Allowance for Funds
Used During            89             137           127           273
Construction
Other Income           --           125           97            317
Other Expense          (11)           (11)          (21)          (151)
                                                              
Total Other Income,    78             251           203           439
net
                                                              
Interest Charges       1,538          1,779         2,693         3,133
                                                              
Income before Income   6,711          5,682         11,546        8,393
Taxes
                                                              
Income Taxes           2,230          1,957         3,888         2,861
                                                              
Net Income             4,481          3,725         7,658         5,532
                                                              
Preferred Stock        51             51            103           103
Dividend Requirements
                                                              
Earnings Applicable to $4,430       $3,674      $7,555      $5,429
Common Stock
                                                              
Earnings per share of                                          
Common Stock:
Basic                  $0.28        $0.23       $0.48       $0.35
Diluted                $0.28        $0.23       $0.47       $0.35
                                                              
Average Number of                                              
Common Shares                                                  
Outstanding :
Basic                  15,829         15,716        15,818        15,704
Diluted                16,092         15,979        16,081        15,967
                                                              
Cash Dividends Paid    $0.1875      $0.1850     $0.3750     $0.3700
per Common Share
                                                              

CONTACT: Bernadette Sohler, Vice President - Corporate Affairs
         Middlesex Water Company
         1500 Ronson Road
         Iselin, New Jersey   08830
         www.middlesexwater.com
         (732) 638-7549

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