DOVER, Del. – Chesapeake Utilities Corporation (NYSE: CPK) announced today that its propane subsidiary, Sharp Energy, has acquired the propane operating assets of Diversified Energy Company. Through this acquisition, the Company expands its operating footprint into North Carolina and South Carolina.
“Sharp Energy has driven significant growth for Chesapeake Utilities as a market leader in residential, commercial, wholesale and AutoGas propane services. Propane remains a core part of our unregulated energy operations given its high demand, especially in more rural areas where natural gas pipelines cannot or have not yet reached,” said Jeff Householder, president and chief executive officer, Chesapeake Utilities. “The addition of Diversified Energy’s propane business expands Sharp’s footprint into the Carolinas, adding to our growing presence along the East Coast. We are pleased to welcome our new employees to the Chesapeake Utilities family and are committed to serving Sharp’s new customers with a continued commitment to excellence, integrity and care.”
“We believe the two organizations align culturally, and we are excited to integrate the Diversified Energy business into Sharp Energy,” said Andy Hesson, vice president of Sharp Energy. “With this transaction, our propane business will add approximately 19,000 residential, commercial and agricultural customers, along with distribution of approximately 10 million gallons of propane annually.”
The deal is expected to be accretive to Chesapeake Utilities’ 2022 earnings, adding approximately $11.3 million in gross margin for 2022.
About Chesapeake Utilities Corporation
Chesapeake Utilities Corporation is a diversified energy delivery company, listed on the New York Stock Exchange, which is engaged in natural gas transmission and distribution; electricity generation and distribution; propane gas distribution; mobile compressed natural gas (CNG) utility services and solutions; and other businesses. Information about Chesapeake Utilities Corporation’s businesses is available at www.chpk.com and on the Annual Report Microsite at cpkannualreport.com.
About Sharp Energy
Sharp Energy, headquartered in Georgetown, Delaware, distributes propane to residential, commercial and industrial customers in Maryland, Delaware, Virginia and Pennsylvania. With multiple rail facilities and several millions of gallons of propane storage, Sharp Energy has established a solid supply portfolio. Sharp Energy is a proud partner of Alliance AutoGas, a national network of companies that have joined together to deliver a comprehensive alternative fueling solution including EPA-certified propane AutoGas vehicle conversions, on-site fueling infrastructure, fuel supply, safety and operational training, and ongoing technical support. To learn more about Sharp Energy, visit www.sharpenergy.com.
Please note that Chesapeake Utilities Corporation is not affiliated with Chesapeake Energy, an oil and natural gas exploration company headquartered in Oklahoma City, Oklahoma.
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