Chesapeake Utilities has executed three separate transactions to sell Pesco's assets and contracts
Chesapeake Utilities has announced that it is exiting the natural gas marketing business by selling most of the assets of Peninsula Energy Services (PESCO), the company’s natural gas marketing subsidiary.
The Dover-based energy company said that it has executed three separate transactions to sell Pesco’s assets and contracts.
The Pesco’s assets and contracts included in the deal are: Florida retail operations will be sold to Gas South, non-Florida retail operations and contracts will be sold to United Energy Trading, and various wholesale contracts in Delaware and Maryland to be sold to NJR Energy Services.
Chesapeake Utilities president and CEO Jeff Householder said: “After performing a strategic review of the PESCO business unit, we determined that our efforts should be focused on the strategies that support our core energy delivery businesses.
“The level of investment in infrastructure required to achieve the scale needed for future growth meant that PESCO would not achieve the target returns we expect.”
Upon the closing of the deals this year, Chesapeake Utilities anticipates to recognise a gain from the divestiture of assets.
PESCO assistant vice president Bill Hancock said: “Commitment to quality service, access to supply, and service offerings were the driving factors for the selected counterparties.
“We are working closely with Gas South, UET, and NJRES to ensure each transaction is executed in an efficient manner with minimal impact to the respective customers.
“We have one remaining small book of business, our Producer Services portfolio, which we are targeting to sell by the end of the year.”
Chesapeake Utilities acquired Marlin in December 2018
In December 2018, Chesapeake Utilities had acquired Marlin CNG Services (Marlin), a North American supplier of mobile compressed natural gas (CNG) utility and pipeline solutions, for an undisclosed price.
Based in Delaware, US, Chesapeake Utilities is a diversified energy company engaged in natural gas distribution and transmission; electricity generation and distribution; propane gas distribution; and other businesses.