Chesapeake Utilities to acquire Florida City Gas for $923mn
New York-listed Chesapeake Utilities Corp on September 26 announced that it will acquire Florida City Gas (FCG) from NextEra Energy for $923mn in cash. The transaction is expected to close by the end of the fourth quarter of 2023.
FCG is a natural gas distribution company that serves approximately 120,000 residential and commercial customers across eight counties in Florida. Its natural gas system includes approximately 3,800 miles (6115.5 km) of distribution main and 80 miles of transmission pipe. The acquisition will more than double Chesapeake Utilities' natural gas business in Florida, the company said.
"This acquisition will more than double our natural gas business in Florida, one of the fastest growing states in the nation. For several years, gas distribution customer growth in Florida has significantly exceeded national averages. Demand for natural gas continues to increase as Florida consumers seek reliable, domestic and affordable energy for their homes and businesses," said Jeff Householder CEO of Chesapeake Utilities.
Chesapeake Utilities said that the acquisition is expected to be accretive to its earnings and dividend growth. The company has increased its capital investment plan and extended its earnings guidance through 2028 to reflect the increased scale and investment opportunities related to the transaction.