By Josh Beckerman

NextEra Energy agreed to sell Florida City Gas to Chesapeake Utilities for $923 million, which it said supports its strategy of redeploying capital into core businesses.

NextEra bought FCG from Southern Co. in 2018 for about $530 million. FCG has about 120,000 residential and commercial natural gas customers. NextEra affirmed its guidance for adjusted earnings per share of $2.98 to $3.13 this year and $3.23 to $3.43 in 2024.

Chesapeake said it increased its capital-investment plan and extended its earnings guidance through 2028 to reflect the increased scale and investment opportunities related to the deal, with an implied EPS growth rate of about 8% through 2028.

Chesapeake said "gas distribution customer growth in Florida has significantly exceeded national averages" and said the transaction "provides expansion opportunities into unserved and underserved communities throughout a widened service territory." It expects FCG will be helpful in categories like renewable natural gas, alternative fueling stations and fleet conversions.

Chesapeake expects to close the deal by the end of the fourth quarter.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

September 26, 2023 18:47 ET (22:47 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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