Transformative transaction more than
doubles operations in high-growth Florida; expands regulated utility business
mix and aligns with long-term earnings and dividend growth
targets.
DOVER,
Del., Dec. 1, 2023 /PRNewswire/
-- Chesapeake Utilities Corporation (NYSE: CPK) today
announced the completion of the acquisition of Florida City Gas
(FCG), which is now a wholly-owned subsidiary of the Company. 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.
"We are pleased to formally welcome Florida City Gas and excited
about the opportunities we can pursue given our combined
capabilities," said Jeff
Householder, chairman, president and chief executive
officer. "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."
As previously announced, Chesapeake Utilities' capital
expenditure guidance is projected to be $1.5
billion to $1.8 billion for
the five-year period ending 2028, an increase of 65% over its
previous plan. Approximately 60% of the Company's upcoming
five-year capital investment plan will be allocated to Florida, including investments related to
pipeline replacement programs, expansions to support customer
growth and increased transmission capabilities to reach new
developments and support increased demand.
With this transaction, Chesapeake Utilities' regulated
operations are projected to represent approximately 87% of its
business mix.
"We are excited about the long-term value creation anticipated
from the FCG acquisition. Leveraging Chesapeake Utilities' proven
track record and disciplined approach, we aim to replicate the
success of past acquisitions, like Florida Public Utilities," said
Beth Cooper, executive vice
president, chief financial officer, treasurer and assistant
corporate secretary. "We've successfully implemented the permanent
financing plan for this transaction, maintaining a strong balance
sheet. Well positioned for 2025 goals, we'll drive earnings growth
through strategic investments, regulatory initiatives and a
continued focus on efficiencies."
The Company will provide more detail on its acquisition
integration plan as part of its Fourth Quarter and Full Year 2023
Earnings communications in February
2024.
About Chesapeake Utilities Corporation
Chesapeake Utilities Corporation is a diversified energy
delivery company listed on the New York Stock Exchange. Chesapeake
Utilities Corporation offers sustainable energy solutions through
its natural gas transmission and distribution, electricity
generation and distribution, propane gas distribution, mobile
compressed natural gas utility services and solutions and other
businesses. For more information, visit www.chpk.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.
Contacts:
Investors
Beth W.
Cooper, Chesapeake Utilities Corporation
Executive Vice President, Chief Financial Officer, Treasurer and
Assistant Corporate Secretary
302.734.6022
Michael Galtman, Chesapeake
Utilities Corporation
Senior Vice President and Chief Accounting Officer
302.217.7036
Media
Hugh
Burns/Delia
Cannan/Pamela Greene
Reevemark
212.433.4600
CPK-Team@reevemark.com
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SOURCE Chesapeake Utilities Corporation