NextEra Energy has announced its agreement to sell Florida City Gas (FCG) to Chesapeake Utilities for a whopping $923 million. This strategic move aligns with NextEra’s goal of redeploying capital into its core businesses. The sale of FCG comes just three years after NextEra acquired it from Southern Co. for approximately $530 million. FCG currently serves around 120,000 residential and commercial natural gas customers. Despite the sale, NextEra remains confident in its adjusted earnings per share guidance for this year ($2.98 to $3.13) and 2024 ($3.23 to $3.43).
Chesapeake’s Plans and Future Growth
Chesapeake Utilities has expressed its excitement about the acquisition, highlighting its decision to increase its capital-investment plan and extend its earnings guidance through 2028. This move factors in the expanded scale and investment opportunities resulting from the deal with NextEra. Chesapeake anticipates an impressive estimated EPS growth rate of about 8% through 2028.
Expansion Opportunities and Benefits
In their statement, Chesapeake emphasized the rapid growth of gas distribution customers in Florida, which has significantly surpassed national averages. Furthermore, the transaction opens up expansion opportunities for Chesapeake to serve unserved and underserved communities across a wider service territory. Particularly promising areas for FCG include renewable natural gas, alternative fueling stations, and fleet conversions.
Closing the Deal
Chesapeake expects the acquisition of FCG to be finalized by the end of the fourth quarter. This bold move positions Chesapeake as a major player in the industry, poised for continued growth and success.