Chesapeake Utilities Retail Supplier Acquires Retail Book

Peninsula Energy Services Company (PESCO), a subsidiary of Chesapeake Utilities Corporation, acquired on August 1 certain commercial and industrial marketing assets -- specifically located in Western Pennsylvania -- from ARM Energy Management, LLC (AEM), a subsidiary of ARM Energy.

Taylor Tipton, President of AEM, said, "We have successfully built a strong retail book in the Western Pennsylvania region and we are fully confident that it will continue to grow under PESCO's care. That being said, the sale grants ARM Energy and AEM the additional flexibility to focus its attention on the ever increasing opportunities presented in the physical marketing and financial hedging advisory services space in other regions as well as the midstream sector."

The companies said that, "The transaction mutually benefits PESCO and AEM as the acquired assets complement PESCO's current portfolio and will expand PESCO's retail demand in a market where it has existing pipeline capacity and wholesale liquidity. In addition, the acquisition will generate opportunities for PESCO to execute its strategy of aggregating supply and providing associated services. ARM Energy and AEM, on the other hand, will continue to expand their thriving physical marketing and financial hedging advisory services as well as other midstream solutions throughout the U.S. and Canada."

Peninsula Energy Services Company is Chesapeake Utilities' non-regulated energy marketing business that provides natural gas supply and supply management services to more than 3,000 customers in the Southeast, Mid-Atlantic and Mid-West regions. PESCO provides natural gas producer services, asset management, transportation and storage coordination, structured wholesale transactions, risk management, wholesale supply and retail supply.

ARM Energy is a producer services company operating in the physical marketing, trading and midstream sectors. ARM Energy also operates a crude oil gathering and natural gas gathering and processing system in the STACK play of Oklahoma. Additionally, ARM provides hedging advisory services to over 130 upstream companies.