Sequent, Chesapeake Utilities Extend Contract
Sequent To Manage Assets For Delaware, Maryland Natural Gas Divisions
November 30, 2004
HOUSTON, Texas - November 30, 2004 - Sequent Energy Management, the wholesale marketing and asset optimization arm of AGL Resources (NYSE: ATG), and Chesapeake Utilities Corp. (NYSE: CPK), a diversified utility company, have extended their asset management agreement through the winter of 2007.
For the past year, Sequent has managed the primary natural gas transportation and storage assets of Chesapeake's Delaware and Maryland Divisions. Chesapeake Utilities provides natural gas to approximately 39,000 residential, commercial and industrial customers in Delaware and Maryland on the Delmarva Peninsula.
In its role as an asset manager, Sequent has been successful in lowering costs and providing value to its clients' natural gas customers. Sequent's portfolio of energy clients include utilities, marketers, retail aggregators, municipalities and large industrial customers primarily in the eastern half of the United States.
"Sequent is delighted to have Chesapeake's confidence in our services," said Marshall Lang, Sequent's vice president of business development. "This extension is an endorsement of our successful service to Chesapeake over the past year. Our arrangement has been good for both Chesapeake and Sequent - an extension of mutual benefit."
"Chesapeake Utilities remains committed to the goal of creating value for our customers and our shareholders," said Jim Moore, Chesapeake's Director of Natural Gas Distribution. "Our past year with Sequent has certainly generated positive results that have assisted us in carrying out that commitment and our complementary goals have laid the framework to allow both companies to enhance performance as we go forward. It obviously makes sense to extend a relationship that is working well and we believe this extension provides the opportunity to build upon what we both agree is already a good thing!"
Sequent has broad access to firm transportation and storage capacity and salt-dome storage in the eastern half of the United States and long-standing relationships with natural gas producers and energy marketers. Sequent manages an average of more than 2 billion cubic feet of natural gas each day.
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.