Sequent Energy Selected as New Asset Manager For Chesapeake Utilities' Delaware and Maryland Natural Gas Divisions

February 11, 2004
HOUSTON, Texas - February 11, 2004 - Sequent Energy Management, the wholesale marketing and asset optimization arm of AGL Resources Inc. (NYSE: ATG), has signed an agreement to manage Chesapeake Utilities Corporation's (NYSE:CPK) Delaware and Maryland Divisions' primary natural gas transportation and storage assets. Specific terms of the agreement were not disclosed.

Chesapeake Utilities, a diversified utility company engaged in natural gas distribution and transmission, propane distribution and wholesale marketing and advanced information services, provides natural gas to approximately 38,000 residential, commercial and industrial customers in Delaware and Maryland on the Delmarva Peninsula.

In its asset manager role for other clients - including utilities, marketers, retail aggregators, municipalities and large industrial customers primarily in the eastern half of the United States - Sequent has been successful in lowering costs and providing value.

"Sequent's portfolio of dynamic clients is greatly enhanced by the addition of Chesapeake," said Marshall Lang, Sequent Vice President of Business Development. "Sequent is excited to have Chesapeake as one of our key asset management clients. We are confident that our experience specific to asset management will prove to be of value."

"Chesapeake Utilities constantly seeks ways to create value for its customers and its shareholders," said Jim Moore, Chesapeake's Director of Natural Gas Distribution. "We've used variations of the asset management concept successfully for the past several years, and we believe that Sequent Energy has the resources and the commitment to assist us in building upon our proven track record."

Sequent has broad access to firm transportation and storage capacity, ties to extensive liquefied natural gas (LNG) operations and salt-dome storage in the eastern half of the United States and long-standing relationships with natural gas producers and energy marketers. For the year ended December 31, 2003, Sequent sold an average physical gas volume of 1.75 billion cubic feet.

About Chesapeake Utilities

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.

About Sequent Energy Management

Sequent Energy Management, a wholly owned subsidiary of AGL Resources Inc. (NYSE: ATG), is a Houston-based entity focusing on asset management and the wholesale trading, marketing, gathering and transporting of natural gas. Sequent is rapidly positioning itself as a dominant niche player in the Southeastern United States natural gas market. For more information, visit www.sequentenergy.com.

About AGL Resources

AGL Resources Inc. is a regional holding company for energy and infrastructure related businesses in the Southeast. The company is the second largest natural gas-only distribution company in the United States and serves nearly 1.8 million customers throughout Georgia, Chattanooga and Southeastern Virginia. AGL Resources also is engaged through subsidiaries and partnerships in other businesses, including retail energy marketing, wholesale energy services and telecommunications infrastructure. For more information, visit www.aglresources.com.