— Transaction Valued at approximately $59.2 million —

Dover, Delaware – Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake Utilities” or “Company”) and Gatherco, Inc. (“Gatherco”) today announced that they have entered into a merger agreement, dated as of January 30, 2015 under which Chesapeake Utilities will acquire Gatherco. Upon consummation of the transaction, Gatherco will merge into Aspire Energy of Ohio, LLC (“Aspire Energy”), a wholly-owned subsidiary of Chesapeake Utilities. The transaction was approved by the Gatherco Board of Directors and by Chesapeake Utilities’ Merger and Acquisition Committee. The merger, which is expected to close in the second quarter of 2015, is subject to approval by the Gatherco shareholders. Chesapeake Utilities stockholder approval of the merger is not required. Management expects the transaction to be accretive in 2016 – the first full year of operation following the merger.

The transaction has an aggregate value of approximately $59.2 million, inclusive of the following:

    • $49.8 million in exchange for all outstanding shares of Gatherco common stock, paid as follows:
      • 593,005 shares of Chesapeake Utilities common stock, valued at $29.9 million, and
      • $19.9 million in cash (before payment of certain transaction expenses and escrow deposits);
    • $7.7 million in cash in consideration for cancellation of all outstanding Gatherco stock options; and
    • Assumption of Gatherco’s debt at closing, estimated to be $1.7 million.

Gatherco is a natural gas infrastructure company providing natural gas midstream services. Gatherco was established in 1997 in conjunction with the acquisition of Columbia Gas Transmission’s natural gas gathering assets in Ohio. Gatherco’s assets include 16 gathering systems and over 2,000 miles of pipelines in Central and Eastern Ohio. Gatherco provides natural gas gathering services and natural gas liquid processing services to over 300 producers, and supplies natural gas to over 6,000 customers in Ohio through the Consumers Gas Cooperative (“Cooperative”), an independent entity which Gatherco manages under an operating agreement.

At the close of the transaction, Gatherco, as merged into Aspire Energy, will continue to operate as a separate business unit, reporting to Elaine B. Bittner, Chesapeake Utilities’ Senior Vice President of Strategic Development. “This transaction is a great strategic win for both companies, and meets key goals in Chesapeake Utilities’ strategic plan. Both Chesapeake Utilities and Gatherco value their employees, are committed to excellent customer service, and are dedicated to achieving profitable long-term growth. Chesapeake Utilities will invest additional resources in Gatherco to increase its marketing channels, generate increased opportunities for the Cooperative it manages and attract additional producers to Gatherco’s services. We look forward to building meaningful connections with the local communities in the Ohio region and serving them in the Chesapeake Utilities tradition,” noted Ms. Bittner.

“We believe this transaction provides growth opportunities that will benefit the shareholders and customers of both companies,