Dover, Delaware — Chesapeake Utilities Corporation (NYSE: CPK) (“Chesapeake”) announced today that it has entered into an agreement to purchase the operating assets of Eastern Shore Gas Company (“Eastern Shore Gas”) and its affiliate, Eastern Shore Propane Company (“Eastern Shore Propane”), both of which are indirect, wholly-owned subsidiaries of Energy Equity Partners, L.P.

Based in Worcester County, Maryland, Eastern Shore Gas provides propane distribution service to approximately 11,000 residential and commercial customers in Worcester County, Maryland, primarily in Ocean City, West Ocean City, Ocean Pines, Berlin, Pocomoke and Snow Hill. The propane distribution services are provided from central storage facilities through underground gas distribution mains and services very similar to a natural gas distribution system