Chesapeake Utilities Corporation announced the completion of the acquisition of Florida City Gas (FCG), 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."
Chesapeake Utilities Unveils Plan Focused on Florida Expansion
As previously communicated, Chesapeake Utilities anticipates a capital expenditure range of $1.5 billion to $1.8 billion for the five years concluding in 2028, reflecting a 65% increase from its previous plan.
About 60% of the company's forthcoming five-year capital investment strategy is earmarked for Florida.
This allocation encompasses investments tied to pipeline replacement initiatives, expansions to facilitate customer growth, and enhanced transmission capabilities to reach new developments and meet heightened demand.
Following this transaction, Chesapeake Utilities foresees that regulated operations will comprise around 87% of its overall business mix.
The company intends to provide a more comprehensive outline of its acquisition integration plan during its Fourth Quarter and full-year 2023 Earnings communications scheduled for February 2024.