JUNO
BEACH, Fla., Sept. 26,
2023 /PRNewswire/ -- 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.
"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.
Outlook
NextEra Energy today 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.
Presentation at 2023 Wolfe Research Utilities, Midstream
& Clean Energy Conference
John
Ketchum is scheduled to present at the 2023 Wolfe Research
Utilities, Midstream & Clean Energy Conference in New York City on Sept.
27, 2023, at 11 a.m.
ET. He plans to discuss, among other things, NextEra
Energy's long-term growth expectations. A live audio webcast and a
copy of the presentation materials will be available at
www.NextEraEnergy.com/investors. For those unable to listen to the
live webcast, a replay will be available for 90 days by accessing
the link listed above.
NextEra Energy, Inc.
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.
NextEra Energy's management uses adjusted earnings, which is a
non-GAAP financial measure, internally for financial planning,
analysis of performance, reporting of results to the board of
directors and as an input in determining performance-based
compensation under the company's employee incentive compensation
plans. NextEra Energy also uses earnings expressed in this fashion
when communicating its financial results and earnings outlook to
analysts and investors. NextEra Energy's management believes that
adjusted earnings provide a more meaningful representation of
NextEra Energy's fundamental earnings power.
NextEra Energy's adjusted earnings expectations exclude the
cumulative effect of adopting new accounting standards; the effects
of non-qualifying hedges and unrealized gains and losses on equity
securities held in NextEra Energy Resources, LLC's nuclear
decommissioning funds and other than temporary impairments, none of
which can be determined at this time. Adjusted earnings
expectations also exclude the effects of NextEra Energy Partners,
LP net investment gains, differential membership interests-related
and impairment charges related to NextEra Energy's investment in
Mountain Valley Pipeline, LLC. In addition, adjusted earnings
expectations assume, among other things, normal weather and
operating conditions; positive macroeconomic conditions in the U.S.
and Florida; supportive commodity markets; current forward curves;
public policy support for wind and solar development and
construction; market demand and transmission expansion to support
wind and solar development; market demand for pipeline capacity;
access to capital at reasonable cost and terms; divestitures to
NextEra Energy Partners, LP; no adverse litigation decisions; and
no changes to governmental policies or incentives. Please see the
accompanying cautionary statements for a list of the risk factors
that may affect future results.
Cautionary Statements and Risk Factors That
May Affect Future Results
This news release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are not
statements of historical facts, but instead represent the current
expectations of NextEra Energy, Inc. (NextEra Energy) and
Florida Power & Light Company
(FPL) regarding future operating results and other future events,
many of which, by their nature, are inherently uncertain and
outside of NextEra Energy's and FPL's control. Forward-looking
statements in this news release include, among others, statements
concerning adjusted earnings per share expectations and future
operating performance, statements concerning future dividends, and
statements concerning the sale of FCG. In some cases, you can
identify the forward-looking statements by words or phrases such as
"will," "may result," "expect," "anticipate," "believe," "intend,"
"plan," "seek," "potential," "projection," "forecast," "predict,"
"goals," "target," "outlook," "should," "would" or similar words or
expressions. You should not place undue reliance on these
forward-looking statements, which are not a guarantee of future
performance. The future results of NextEra Energy and FPL and their
business and financial condition are subject to risks and
uncertainties that could cause their actual results to differ
materially from those expressed or implied in the forward-looking
statements, or may require them to limit or eliminate certain
operations. These risks and uncertainties include, but are not
limited to, those discussed in this news release and the following:
effects of extensive regulation of NextEra Energy's and FPL's
business operations; inability of NextEra Energy and FPL to recover
in a timely manner any significant amount of costs, a return on
certain assets or a reasonable return on invested capital through
base rates, cost recovery clauses, other regulatory mechanisms or
otherwise; impact of political, regulatory, operational and
economic factors on regulatory decisions important to NextEra
Energy and FPL; disallowance of cost recovery by FPL based on a
finding of imprudent use of derivative instruments; effect of any
reductions or modifications to, or elimination of, governmental
incentives or policies that support utility scale renewable energy
projects of NextEra Energy and FPL and its affiliated entities or
the imposition of additional tax laws, tariffs, duties, policies or
assessments on renewable energy or equipment necessary to generate
it or deliver it; impact of new or revised laws, regulations,
interpretations or constitutional ballot and regulatory initiatives
on NextEra Energy and FPL; capital expenditures, increased
operating costs and various liabilities attributable to
environmental laws, regulations and other standards applicable to
NextEra Energy and FPL; effects on NextEra Energy and FPL of
federal or state laws or regulations mandating new or additional
limits on the production of greenhouse gas emissions; exposure of
NextEra Energy and FPL to significant and increasing compliance
costs and substantial monetary penalties and other sanctions as a
result of extensive federal regulation of their operations and
businesses; effect on NextEra Energy and FPL of changes in tax
laws, guidance or policies as well as in judgments and estimates
used to determine tax-related asset and liability amounts; impact
on NextEra Energy and FPL of adverse results of litigation; impacts
on NextEra Energy or FPL of allegations of violations of law;
effect on NextEra Energy and FPL of failure to proceed with
projects under development or inability to complete the
construction of (or capital improvements to) electric generation,
transmission and distribution facilities, gas infrastructure
facilities or other facilities on schedule or within budget; impact
on development and operating activities of NextEra Energy and FPL
resulting from risks related to project siting, planning,
financing, construction, permitting, governmental approvals and the
negotiation of project development agreements, as 3 well as supply
chain disruptions; risks involved in the operation and maintenance
of electric generation, transmission and distribution facilities,
gas infrastructure facilities, retail gas distribution system in
Florida and other facilities;
effect on NextEra Energy and FPL of a lack of growth or slower
growth in the number of customers or in customer usage; impact on
NextEra Energy and FPL of severe weather and other weather
conditions; threats of geopolitical factors, terrorism and
catastrophic events that could result from terrorism, cyberattacks
or other attempts to disrupt NextEra Energy's and FPL's business or
the businesses of third parties; inability to obtain adequate
insurance coverage for protection of NextEra Energy and FPL against
significant losses and risk that insurance coverage does not
provide protection against all significant losses; a prolonged
period of low gas and oil prices could impact NextEra Energy
Resources, LLC's (NextEra Energy Resources) gas infrastructure
business and cause NextEra Energy Resources to delay or cancel
certain gas infrastructure projects and could result in certain
projects becoming impaired; risk to NextEra Energy Resources of
increased operating costs resulting from unfavorable supply costs
necessary to provide NextEra Energy Resources' full energy and
capacity requirement services; inability or failure by NextEra
Energy Resources to manage properly or hedge effectively the
commodity risk within its portfolio; effect of reductions in the
liquidity of energy markets on NextEra Energy's ability to manage
operational risks; effectiveness of NextEra Energy's and FPL's risk
management tools associated with their hedging and trading
procedures to protect against significant losses, including the
effect of unforeseen price variances from historical behavior;
impact of unavailability or disruption of power transmission or
commodity transportation facilities on sale and delivery of power
or natural gas by NextEra Energy, including FPL; exposure of
NextEra Energy and FPL to credit and performance risk from
customers, hedging counterparties and vendors; failure of NextEra
Energy or FPL counterparties to perform under derivative contracts
or of requirement for NextEra Energy or FPL to post margin cash
collateral under derivative contracts; failure or breach of NextEra
Energy's or FPL's information technology systems; risks to NextEra
Energy and FPL's retail businesses from compromise of sensitive
customer data; losses from volatility in the market values of
derivative instruments and limited liquidity in over-the-counter
markets; impact of negative publicity; inability of FPL to
maintain, negotiate or renegotiate acceptable franchise agreements
with municipalities and counties in Florida; occurrence of work strikes or
stoppages and increasing personnel costs; NextEra Energy's ability
to successfully identify, complete and integrate acquisitions,
including the effect of increased competition for acquisitions;
environmental, health and financial risks associated with NextEra
Energy Resources' and FPL's ownership and operation of nuclear
generation facilities; liability of NextEra Energy and FPL for
significant retrospective assessments and/or retrospective
insurance premiums in the event of an incident at certain nuclear
generation facilities; increased operating and capital expenditures
and/or reduced revenues at nuclear generation facilities of NextEra
Energy or FPL resulting from orders or new regulations of the
Nuclear Regulatory Commission; inability to operate any of NextEra
Energy Resources' or FPL's owned nuclear generation units through
the end of their respective operating licenses; effect of
disruptions, uncertainty or volatility in the credit and capital
markets or actions by third parties in connection with
project-specific or other financing arrangements on NextEra
Energy's and FPL's ability to fund their liquidity and capital
needs and meet their growth objectives; inability of NextEra
Energy, FPL and NextEra Energy Capital Holdings, Inc. to maintain
their current credit ratings; impairment of NextEra Energy's and
FPL's liquidity from inability of credit providers to fund their
credit commitments or to maintain their current credit ratings;
poor market performance and other economic factors that could
affect NextEra Energy's defined benefit pension plan's funded
status; poor market performance and other risks to the asset values
of NextEra Energy's and FPL's nuclear decommissioning funds;
changes in market value and other risks to certain of NextEra
Energy's investments; effect of inability of NextEra Energy
subsidiaries to pay upstream dividends or repay funds to NextEra
Energy or of NextEra Energy's performance under guarantees of
subsidiary obligations on NextEra Energy's ability to meet its
financial obligations and to pay dividends on its common stock; the
fact that the amount and timing of dividends payable on NextEra
Energy's common stock, as well as the dividend policy approved by
NextEra Energy's board of directors from time to time, and changes
to that policy, are within the sole discretion of NextEra Energy's
board of directors and, if declared and paid, dividends may be in
amounts that are less than might be expected by shareholders;
NextEra Energy Partners, LP's inability to access sources of
capital on commercially reasonable terms could have an effect on
its ability to consummate future acquisitions and on the value of
NextEra Energy's limited partner interest in NextEra Energy
Operating Partners, LP; effects of disruptions, uncertainty or
volatility in the credit and capital markets on the market price of
NextEra Energy's common stock; and the ultimate severity and
duration of public health crises, epidemics and pandemics, and its
effects on NextEra Energy's or FPL's businesses. NextEra Energy and
FPL discuss these and other risks and uncertainties in their annual
report on Form 10-K for the year ended December 31, 2022 and other Securities and
Exchange Commission (SEC) filings, and this news release should be
read in conjunction with such SEC filings. The forward-looking
statements made in this news release are made only as of the date
of this news release and NextEra Energy and FPL undertake no
obligation to update any forward-looking statements.
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SOURCE NextEra Energy, Inc.; Chesapeake Utilities
Corporation