Chesapeake Utilities Corporation (NYSE:CPK) announced a public offering of $330 million in common stock . The underwriters have been granted a 30-day option to purchase up to an additional $49.5 million in company shares. Barclays Capital Inc., RBC Capital Markets, LLC, and Wells Fargo Securities, LLC are the joint lead book-running managers for this offering.
The net proceeds from the offering will be used to fund the acquisition of Florida City Gas, which is expected to be completed in Q4 2023, and to cover related expenses. The offering is being made exclusively through a prospectus supplement and an accompanying prospectus.
A preliminary prospectus supplement and an accompanying prospectus will be filed with the U.S. Securities and Exchange Commission (SEC) and will be accessible on the SEC's website. A shelf registration linked to these shares was filed with the SEC on August 31, 2023.
Chesapeake Utilities Corporation provides sustainable energy solutions across various channels including natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, and mobile compressed natural gas utility services.
InvestingPro Insights
In light of Chesapeake Utilities Corporation's (NYSE:CPK) recent announcement, it's worth noting some key metrics and tips from InvestingPro. CPK has a history of stability, having raised its dividend for 20 consecutive years and maintained dividend payments for 53 consecutive years. This is a promising sign for investors, particularly those seeking long-term dividend income.
InvestingPro Data also shows that CPK is currently trading near its 52-week low. This could present a potential buying opportunity for investors who believe in the company's long-term prospects, especially given the upcoming acquisition of Florida City Gas.
However, it's important to balance this with some cautionary notes. Two analysts have revised their earnings downwards for the upcoming period, and the company's revenue growth has been slowing down recently. This could suggest some short-term challenges ahead.
These are just a few of the insights available on InvestingPro, which hosts a total of 11 tips for CPK, providing a comprehensive picture for potential investors. For more detailed information and additional tips, consider exploring InvestingPro's suite of tools and resources.
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