NextEra Energy Sells Florida City Gas To Chesapeake Utilities: Here's Details
Portfolio Pulse from Lekha Gupta
NextEra Energy Inc's subsidiary Florida Power & Light Company has agreed to sell Florida City Gas to Chesapeake Utilities Corp for $923 million in cash. The deal is expected to close in Q4 FY23. NextEra expects the transaction to be accretive to its earnings immediately upon closure and reiterated its guidance for adjusted EPS at $2.98-$3.13 for 2023 and $3.23-$3.43 for 2024. Chesapeake's Florida portfolio is expected to contribute about 60% of its total utility net plant and operating income post-acquisition.
September 27, 2023 | 10:00 am
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POSITIVE IMPACT
Chesapeake Utilities' Florida portfolio is expected to contribute about 60% of its total utility net plant and operating income post-acquisition. The company expects to exceed its current capital expenditure outlook of $900 million to $1.1 billion for the five years ended 2025.
The acquisition of Florida City Gas is expected to significantly contribute to Chesapeake Utilities' income and exceed its capital expenditure outlook, which could positively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
NextEra Energy expects the sale of Florida City Gas to be immediately accretive to its earnings. The company reiterated its EPS guidance for 2023 and 2024.
The sale of Florida City Gas is expected to boost NextEra's earnings immediately upon closure, which could positively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100