Florida City Gas Acquisition
About the Acquisition
Chesapeake Utilities Corporation has completed the acquisition of Florida City Gas from NextEra Energy for $923.4 million in cash. This transaction represents an expansion of Chesapeake Utilities’ footprint in the dynamic and high-growth market of Florida, encompassing five of the top 10 most populous counties. By more than doubling Chesapeake Utilities’ customer base and natural gas infrastructure in the state, the Company is positioned for substantial future growth.
About Florida City Gas
Florida City Gas serves about 120,000 residential and commercial natural gas customers across eight counties in Florida, including Miami-Dade, Broward, Brevard, Palm Beach, Hendry, Martin, St. Lucie and Indian River. Its natural gas system includes approximately 3,800 miles of distribution main and 80 miles of transmission pipe.
Jeff Householder
President and CEO
Chesapeake Utilities Corporation
A Message to Stakeholders from CEO, Jeff Householder
“We are pleased to formally welcome Florida City Gas and excited about the opportunities we can pursue given our combined capabilities. The integration of our businesses creates a compelling foundation: one focused on driving sustainable earnings growth consistent with our long-term track record. Together, we’ll strengthen our Florida presence, leveraging our core competencies and building upon our strong community and regulatory relationships, while continuing to meet the growing demand for natural gas.”
Service Map
Acquisition Highlights
- Transformative acquisition more than doubles operations in high-growth Florida service areas
- Positions CPK to execute on additional growth opportunities in regulated and unregulated businesses
- Supports long-term earnings and dividend growth; increases capital investment plan; financing plan maintains strong balance sheet
Strategic Rationale
Acquisition of operations in high growth Florida service areas provides enhanced platform for growth, as well as scale and financial benefits
- Expands platform in Florida: Post-acquisition, Chesapeake Utilities’ footprint will expand significantly in Florida. the Company’s pro forma Florida portfolio is expected to comprise approximately 60% of its total assets and operating income, versus 45% for the standalone business at the end of 2022.
- Enhanced scale and efficiency: As a result of this transaction, the Company’s regulated utility customers and net plant will increase by 50% and 30%, respectively, which will bring enhanced scale and efficiency benefits.
- Financial benefits: The transaction supports and extends the Company’s long-term EPS guidance and provides approximately $500 million in investment opportunities associated with Florida City Gas over the next five years. The financing plan includes a balanced mix of equity and long-term debt, which supports long-term dividend growth and maintains the Company’s strong balance sheet.
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500 Energy Lane
Dover, Delaware 19901
Chesapeake Utilities Corporation (“Chesapeake Utilities”) is a diversified energy delivery company listed on the New York Stock Exchange under the ticker symbol “CPK” (NYSE:CPK). Chesapeake Utilities is not, nor has it ever been, affiliated with Chesapeake Energy Corporation.