NextEra Energy to Sell Florida City Gas to Chesapeake Utilities for $923 Million

(Reuters) — NextEra Energy said on Tuesday it plans to sell Florida City Gas (FCG) to Chesapeake Utilities for $923 million in cash. FCG’s natural gas infrastructure encompasses approximately 3,800 miles of distribution mains and 80 miles of transmission pipelines.

The deal includes $145 million of intercompany debt, NextEra said.

Florida City Gas provides natural gas services to a diverse customer base comprising around 120,000 residential and commercial users across eight Florida counties, which encompass Miami-Dade, Broward, Brevard, Palm Beach, Hendry, Martin, St. Lucie, and Indian River.

According to Nasdaq, NextEra Energy confirmed that their long-term financial projections remain unaltered. Specifically, for the years 2023 and 2024, NextEra Energy still anticipates adjusted earnings per share to fall within the brackets of $2.98 to $3.13 and $3.23 to $3.43, respectively.

In the upcoming years, specifically 2025 and 2026, NextEra Energy anticipates a growth rate of 6% to 8% from the 2024 adjusted earnings per share range. This projection corresponds to an expected range of $3.45 to $3.70 for 2025 and $3.63 to $4.00 for 2026.

The sale is expected to close by the end of the fourth quarter of 2023, Chesapeake Utilities said, adding that Florida operations will then contribute to more than half of its operating income.

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