Chesapeake Utilities to acquire Florida City Gas for nearly $1b
Transactions - SEPTEMBER 27, 2023

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Chesapeake Utilities to acquire Florida City Gas for nearly $1b

by Kali Persall

Chesapeake Utilities has plans to acquire Florida City Gas (FCG) from NextEra Energy for $923 million in cash.

FCG serves 120,000 residential and commercial natural gas customers across eight counties in Florida. Its natural gas system includes 3,800 miles of distribution main and 80 miles of transmission pipe.

Following the transaction, FCG will become a wholly owned subsidiary of Chesapeake Utilities. The company has increased its capital investment plan and extended its earnings guidance through 2028 to reflect the increased scale and investment opportunities related to the transaction.

Chesapeake Utilities will finance the transaction through a combination of long-term debt and equity, according to Beth Cooper, executive vice president, CFO, treasurer and assistant corporate secretary of Chesapeake Utilities.

The deal is expected to close by the end of the fourth quarter of 2023.

“This acquisition will more than double our natural gas busines

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