Chesapeake Utilities' Sharp Energy Expands In North Carolina With J.T. Lee Propane Asset Acquisition: Details
Portfolio Pulse from Shivani Kumaresan
Chesapeake Utilities Corporation's subsidiary, Sharp Energy, has acquired the propane operating assets of J.T. Lee and Son's in Cape Fear, North Carolina. The acquisition adds approximately 3,000 customers and 800,000 gallons of annual propane distribution to Sharp Energy's portfolio, along with a bulk plant with 60,000 gallons of propane storage. The financial terms were not disclosed, but the deal is expected to provide cost savings and synergistic benefits. CPK shares closed higher by 1.99% at $104.42 on Tuesday.
December 20, 2023 | 11:56 am
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Chesapeake Utilities' acquisition of J.T. Lee Propane assets through its subsidiary Sharp Energy is likely to enhance its market presence in North Carolina, adding 3,000 customers and significant propane distribution volume.
The acquisition is strategic, expanding Chesapeake's customer base and storage capacity in North Carolina, which is likely to be viewed positively by investors. The positive price action on the announcement day suggests a short-term bullish sentiment.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90