Categories Earnings, Other Industries

NextEra Energy inks a deal to acquire certain assets of Southern Company

Energy producer NextEra Energy (NEE) has agreed to acquire Southern company’s (SO) some assets including Florida City Gas, Gulf Power and the entities holding Southern Power’s interests in Plant Oleander and Plant Stanton for $6.5 billion, which consists of $1.4 billion debt.

The transaction, subject to the regulatory approvals, will deliver benefits to consumers of Florida City Gas and Gulf Power as well as the Juno Beach, Florida-based company’s stakeholders. If the deal finishes successfully, it is anticipated to add $0.15 and $0.20 to the NextEra Energy’s adjusted EPS in 2020 and 2021 respectively.

The purchase of Florida City Gas is targeted to be concluded in the first six months of 2019, while Gulf Power and the natural-gas generating plants’ acquisition is expected to be completed by 3Q18.

Florida Power & Light’s (FPL) parent company will fund this purchase through the issuance of new debt, while Southern Company will utilize the amount from this transaction to cut down its debt and enrich its balance sheet.

Last year, NextEra Energy’s $18.7-billion merger deal with Energy Future Holdings was dismissed by Texas Public Utility Commission since the Commission felt that the agreement was not in the public interest.

For their recently ended first quarter, both the utility companies reported results that beat estimates. In the past one year, the shares of NextEra Energy have surged 19% while that of Southern Company have dipped 14%. On this buyout news, shares of the acquiring company went up 2%, while the Atlanta-based energy company’s stock rose 1.5% in the early hours of trading today.

Most Popular

FDX Earnings: FedEx Q1 adjusted earnings drop; revenue up 5%

Cargo giant FedEx Corporation (NYSE: FDX) Thursday reported a decline in first-quarter adjusted earnings, despite an increase in revenues. The company also provided guidance for fiscal 2023. Net income, adjusted

Key highlights from Darden Restaurants (DRI) Q1 2023 earnings results

Darden Restaurants, Inc. (NYSE:DRI) reported first quarter 2023 earnings results. Total sales increased 6.1% year-over-year to $2.4 billion, driven by blended same-restaurant sales growth of 4.2%. Net earnings amounted to

ACN Earnings: Key quarterly highlights from Accenture’s Q4 2022 financial results

Accenture (NYSE: ACN) reported fourth quarter 2022 earnings results today. Total revenues were $15.4 billion, up 15% year-over-year in US dollars and up 22.4% in local currency. Net income attributable

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top