NextEra Energy announces sale agreement for Florida City Gas and reaffirms long-term outlook
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NextEra Energy, Inc. (NYSE: NEE) today announced its Florida Power & Light Company (FPL) subsidiary has entered into a definitive agreement to sell Florida City Gas (FCG) to Chesapeake Utilities Corporation (NYSE: CPK) (Chesapeake Utilities) for $923 million in cash.
John Ketchum
“We are pleased that FPL has reached this agreement to sell FCG to Chesapeake Utilities,” said John Ketchum, chairman, president and chief executive officer, NextEra Energy. “This transaction allows us to continue our strategy of redeploying capital into our core businesses. I want to thank the FCG team for their hard work and accomplishments and am confident they will continue to be successful in the years to come.”
The transaction value of $923 million, including $145 million of intercompany debt, is expected to be accretive to NextEra Energy earnings immediately upon closing. The impact of the gain on sale at the time of closing will be excluded from adjusted earnings. Expected to be completed over the next several months, the sale is conditioned upon satisfaction of the Hart-Scott-Rodino review and customary closing conditions.
FCG 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. Since joining NextEra Energy, FCG has been honored three times as a Most Trusted Utility Brand and twice as a Customer Champion, both recognitions from Escalent.
Goldman Sachs & Co. LLC is serving as financial advisor to NextEra Energy, and Norton Rose Fulbright is serving as the company’s legal advisor.
NextEra Energy is reaffirming that its long-term financial expectations remain unchanged. For 2023 and 2024, NextEra Energy continues to expect adjusted earnings per share to be in the ranges of $2.98 to $3.13 and $3.23 to $3.43, respectively. For 2025 and 2026, NextEra Energy expects to grow 6% to 8%, off the 2024 adjusted earnings per share range. This translates to a range of $3.45 to $3.70 for 2025 and $3.63 to $4.00 for 2026. As previously communicated, NextEra Energy will be disappointed if it is not able to deliver financial results at or near the top end of its adjusted earnings per share ranges through 2026. NextEra Energy also continues to expect to grow its dividends per share at a roughly 10% rate per year through at least 2024, off a 2022 base.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company headquartered in Juno Beach, Florida. NextEra Energy owns Florida Power & Light Company, which is America’s largest electric utility that sells more power than any other utility, providing clean, affordable, reliable electricity to approximately 5.8 million customer accounts, or more than 12 million people across Florida. NextEra Energy also owns a competitive clean energy business, NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun and a world leader in battery storage.
Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from seven commercial nuclear power units in Florida, New Hampshire and Wisconsin. A Fortune 200 company, NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity. NextEra Energy is ranked No. 1 in the electric and gas utilities industry on Fortune’s 2023 list of “World’s Most Admired Companies,” recognized on Fortune’s 2021 list of companies that “Change the World” and received the S&P Global Platts 2020 Energy Transition Award for leadership in environmental, social and governance.
For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.