The strength of nonstandard methods in arithmetic

We consider extensions of Peano arithmetic suitable for doing some of nonstandard analysis, in which there is a predicate N(x) for an elementary initial segment, along with axiom schemes approximating ω1-saturation. We prove that such systems have the same proof-theoretic strength as their natural analogues in second order arithmetic. We close by presenting an even stronger extension of Peano arithmetic, which is equivalent to ZF for arithmetic statements.