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.
PayPal Holdings Inc. (NASDAQ: PYPL) reported stronger-than-expected earnings and revenues for the first quarter of 2021. Shares of the payment service provider gained during Wednesday’s extended trading session soon after
Twilio (NYSE: TWLO) reported first quarter 2021 earnings results today. Revenue increased 62% year-over-year to $590 million. GAAP net loss widened to $206 million, or $1.24 per share, compared to
Uber Technologies (NYSE: UBER) reported first-quarter 2021 financial results after the regular market hours on Wednesday. The ride-hailing company reported Q1 revenue excluding the UK accrual of $3.5 billion, up