Chesapeake Utilities Expands Propane Services in NC with Acquisition of J.T. Lee and Son’s

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Chesapeake Utilities ($NYSE:CPK) Corporation recently announced that it has acquired J.T. Lee and Son’s in an effort to expand its propane services in North Carolina. This acquisition is part of Chesapeake’s larger mission to strengthen its energy operations throughout the Southeast. Chesapeake is a diversified energy company that provides natural gas, propane, electricity, and energy services to residential, commercial, and industrial customers. With this acquisition, the company is now able to offer new energy options to more customers in North Carolina and beyond. The company is committed to providing sustainable energy solutions and has made major investments in clean energy technologies.

In addition, Chesapeake Utilities has a strong focus on safety, investing in numerous initiatives and programs to ensure the safety of its employees and customers.

Price History

This move expands CHESAPEAKE UTILITIES‘ presence in the propane gas industry and further solidifies its position as a prominent provider of energy solutions. The company anticipates further operating income growth in the following years due to increasing demand for propane in the region. The acquisition comes as no surprise given that CHESAPEAKE UTILITIES’ shares opened at $102.9 and closed at $104.4 on Tuesday, up by 2.0% from its prior closing price of 102.4. The move reflects investors’ confidence in the company’s ability to acquire and expand in the energy sector.

It is clear that CHESAPEAKE UTILITIES is firmly committed to providing reliable and cost-effective energy solutions to customers in North Carolina and beyond. With the acquisition of J.T. Lee and Son’s, the company is well-positioned to capitalize on a growing demand for propane and other energy sources, and its shareholders will surely benefit from the increased returns generated by this move. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Analysis

GoodWhale has conducted an analysis of the fundamentals of CHESAPEAKE UTILITIES and come to the conclusion that it has an intermediate health score of 4/10 with regard to its cashflows and debt, indicating that it might be able to pay off debt and fund future operations. We have classified CHESAPEAKE UTILITIES as a ‘rhino’ company, meaning that it has achieved moderate revenue or earnings growth. Given this assessment, investors who are interested in companies with strong fundamentals in asset, dividend, and profitability with medium growth may be interested in CHESAPEAKE UTILITIES. Investors should do further research into CHESAPEAKE UTILITIES before making any investment decisions. More…

Peers

The competition between Chesapeake Utilities Corp and its competitors is fierce. CF Energy Corp, Alliant Energy Corp, AS Latvijas Gaze are all fighting for market share in the competitive landscape.

– CF Energy Corp ($TSXV:CFY)

Calgary-based Cenovus Energy Inc. is a Canadian integrated oil and gas company. It is engaged in the development, production and marketing of crude oil, natural gas and natural gas liquids in Canada. Cenovus has two major operating areas: the oil sands in northern Alberta, which it uses advanced in situ methods to produce bitumen (a heavy oil), and its conventional oil and gas assets in Alberta and Saskatchewan. The company also has a 50% interest in two U.S. refineries.

– Alliant Energy Corp ($NASDAQ:LNT)

Alliant Energy Corporation is a public utility holding company that owns two electric and natural gas utilities, serving more than one million customers in Iowa and Wisconsin. Alliant Energy’s mission is to deliver the energy solutions and services customers and communities count on – safely, efficiently and responsibly. The company’s ROE is 10.06%.

– AS Latvijas Gaze ($LTS:0J4R)

Latvijas Gaze is a Latvian natural gas utility company. It is the largest Latvian gas supplier, with a market share of around 70%. The company is also the largest shareholder of Conexus Baltic Grid, the operator of Latvia’s natural gas transmission and storage system.

Latvijas Gaze has a market capitalization of 319.2 million as of 2022. The company’s return on equity was 12.15% as of the same year.

Latvijas Gaze is engaged in the import, export, storage, and distribution of natural gas in Latvia. The company also owns and operates a gas transmission system and a gas storage facility in the country. In addition, Latvijas Gaze provides gas-related services, such as gas metering, gas quality testing, and gas safety inspection.

Summary

Chesapeake Utilities Corporation has made a recent move to bolster their propane services in North Carolina through the acquisition of J.T. Lee and Son’s. This move is expected to provide more efficient and reliable propane services to customers in the state. The acquisition is also seen as a strategic move, as Chesapeake Utilities expands its market footprint in the region and gains access to additional infrastructure and resources. Investors are likely optimistic about the move, given that it could yield positive returns over time, as Chesapeake Utilities continues to expand its services.