Overview

Chesapeake Utilities

Corporation

and

Aspire Energy

PIOGA April 2, 2015

Jack Lewnard

Outline

Chesapeake Utilities Corporation

Aspire Energy (formerly Gatherco)

acquisition

Columbia Low-Pressure Systems

Southern PA

CHEWP/T-Loop

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Chesapeake’s Existing Service Areas

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Delaware and Maryland Natural Gas Interstate Transmission

Natural Gas Local Distribution

Propane Distribution

Florida Natural Gas Intrastate Transmission

Natural Gas Local Distribution

Electricity Distribution

Combined Heat and Power Project

Propane Distribution

Pennsylvania Natural Gas Interstate Transmission

Propane Distribution

Virginia Propane Distribution

Gatherco/Aspire Energy of Ohio

Chesapeake Utilities Corporation Companies

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• Chesapeake Utilities and Sandpiper Energy have more than 1200 miles of mains and distribute natural gas

to over 69,000 residential and commercial customers in Delaware and Maryland

• Eastern Shore Natural Gas Company owns and operates a 442-mile interstate pipeline with 12,420 hp

compression that transports natural gas from three interstate pipelines in Pennsylvania to customers in

Delaware, Maryland and Pennsylvania

• Sharp Energy distributes propane to 37,000 customers in Delaware, the eastern shore of Maryland and

Virginia, and southeastern Pennsylvania. Operations include over 2.8 million gallons storage capacity and

personnel at 11 Branch Offices, distributing 40 million gallons in 2014

• Florida Public Utilities distributes natural gas to approximately 73,000 residential and commercial

customers; electricity to 31,000 customers and propane to 16,000 customers across Florida • Peninsula Pipeline Company, Inc. provides natural gas transmission services in Florida • Peninsula Energy Services Company, Inc. provides natural gas supply and supply management services to

over 3,000 customers in Florida, Delaware, and Maryland

• Xeron, Inc. markets propane to large trading, petrochemical companies, and retail propane companies in

the southeastern United States

• Aspire Energy (formerly Gatherco) provides gathering and gas processing services to producers, and

supplies gas to regional utility and co-op customers in eastern Ohio

Pursuing Organic Growth Acquisitions

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$249,151,000

$373,917,000

$578,841,122

$-

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

Total Capitalization (including ST Financing)

Investing in Growth

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Continuing to invest high levels of capital expenditures to generate increased value

Recent Acquisitions

• Florida Public Utilities (4/09)

• Indiantown Gas Company (8/10)

• Crescent Propane (12/11)

• Barefoot Bay Propane (1/12)

• Glades Gas (2/13)

• Eastern Shore Gas (5/13)

• Austin Cox (6/13)

• Fort Meade (12/13)

• Gatherco (4/14)

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Investments Translate into Growth in

Earnings

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$13,607,000

$36,000,000

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Net Income

2.6x

Marcellus/Utica Potentially Impacts all

CUC Companies

ESNG – TETCO, Transco,

TCO supply points

PPC – shifting Florida

supply options

LDCs – lower-cost gas

Sharp – Propane supply

dynamics

Energy trading

companies – new supply,

basis changes in basis

Corporate growth

initiatives

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Aspire Energy – Formerly Gatherco

Five interstate pipelines traverse Aspire service area

Currently connects with TCO, Dominion East Ohio (a DTI company), Columbia Gas of Ohio, and Cobra

Pipeline expanding in region, including TCO, DTI, Rover, etc.

Overlaps Utica

1799 Horizontal Permits

1348 Horizontal Wells Drilled

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Regional Developments

Aspire Energy Growth Plan

Grow current business and develop new offerings

Increase regional gas demand

Support Consumers Natural Gas Co-operative

Laterals to industrial and power customers

Pursue corporate growth initiatives in CHP and CNG

Provide access to higher-value natural gas markets

Invest in additional gathering & processing

Leverage CUC experience

ESNG, PESCO

Identify additional systems

Columbia low-pressure systems

Early discussions with producers seeking to re-direct capital from gathering to

E&P activities

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Connecting Supply and Demand: Eight Flags Energy, LLC Project

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• Sited at Rayonier

Advanced Materials,

Fernadino Beach, FL

• Solar Titan 250 gas

turbine

• $40MM investment,

including gas

pipeline,

compression, and

electric transmission

upgrades

• Operational mid-2016

CHEWP and T-Loop Systems

700 miles gathering and transmission

Approx. 220 active receipt meters and 25 delivery meters (deliveries to MGC, CPA,

Blacksville)

Gas flows to Cobb CS then to CPG’s High Pressure Lines

Out-of-service compressors

Porters Falls CS (720HP)

Sedalia CS (350HP)

System MAOP ~50#; typically operates low 30’s, with lines as low as 25# or high as

125#

Texas Eastern crosses the northern portion of the CHEWP system

Dominion crosses CHEWP pipelines approx. 3 miles north of Porters Falls CS

Dominion crosses T-Loop pipelines at locations approx. 10-15 miles northeast of

Cobb CS

High LAUF

Need to attract new volumes to system

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CHEWP and T-Loop Systems

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Southern PA System

120 miles gathering and transmission

Approx. 83 active receipt meters and 25 delivery meters (deliveries to CPA)

System MAOP: Beallsville 32#; McClellandtown 26#

Texas Eastern crosses center portion of the system

McClellandtown overlaps portions of Laurel Mountain Midstream

TCO lines at south of system, but no gas enters system

High LAUF

Need to attract new volumes to system

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Southern PA System

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Benefits as Your Pipeline Partner

CUC has successfully built and operated over $100MM “small-

scale” pipeline/lateral extension projects over the past 5 years.

CUC has in-house engineering, regulatory and management experience to

provide pipeline operations services for Customer.

CUC provides flexible business structures that are custom designed

to meet the unique needs of our clients.

Options to bundle gas supply management with pipeline infrastructure build-out

Quality Operator

Capable of managing federal, state & local issues.

Deep experience with operating services.

In depth knowledge of State, Federal and Local regulations and safety

requirements.

Long-term commitment - security of supply.

CUC is a strategic investor and seeks to own & operate long term.

Strong and stable balance sheet partner.

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Contact Information

Jack Lewnard

Vice President Business Development

(302) 736-7677 office

(302) 222-3664 mobile

Mark Eisenhower

Vice President

(443) 603-0236 office

(302) 387-3946 mobile

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