DOVER, Del., Dec. 9, 2019 /PRNewswire/ -- Chesapeake
Utilities Corporation (Chesapeake Utilities) (NYSE: CPK) and South
Jersey Industries (SJI) (NYSE: SJI) today announced they have
entered into an agreement, dated Dec. 5,
2019, under which Chesapeake Utilities will acquire SJI
subsidiary Elkton Gas, which operates in Cecil County, Maryland. Upon completion of the
transaction, Elkton Gas will become a wholly-owned subsidiary of
Chesapeake Utilities. The transaction was approved by the SJI Board
of Directors and by Chesapeake Utilities' Investment Committee,
which is comprised of five of the Company's Board members. The
acquisition, which is expected to close in the first half of 2020,
is subject to approval by the Maryland Public Service
Commission.
Incorporated in 1863, Elkton Gas delivers safe, reliable and
affordable natural gas to approximately 7,000 residential and
commercial customers within a franchised area of Cecil County, Maryland. Elkton Gas will
continue to operate out of its existing office with the same local
personnel. Customers can expect to continue to receive the same
high quality service that they have experienced with the local
office and its team members. Elkton Gas has also been a long-term
customer of Eastern Shore Natural Gas Company, an interstate
transmission pipeline company that is a wholly-owned subsidiary of
Chesapeake Utilities Corporation.
Chesapeake Utilities currently serves another franchised area of
Cecil County, Maryland with
natural gas service and has been managing its expansion into this
area largely from its Delaware
operations.
"This is an exciting fit and aligns with our Company's growth
strategy to identify new investment opportunities to further our
future earnings growth. The acquisition of Elkton Gas is
significant in that it jumpstarts our current operation, enabling
us to more quickly expand our footprint in Cecil County," said Jeff Householder, President and CEO of
Chesapeake Utilities Corporation. "We are excited about our
prospects for natural gas distribution growth in this growing area
and are committed to delivering superior service to the customers
and communities we serve by: increasing their energy options;
growing our systems and infrastructure in order to provide safe and
reliable delivery of energy to customers; and providing exceptional
customer service."
"Acquiring these operational resources in Cecil County offers close proximity to the
I-95 interstate corridor and to our existing Cecil County service territory which will
better position us for the commercial, industrial and residential
growth opportunities projected for the area," said Shane Breakie, Vice President of Chesapeake
Utilities Corporation, who oversees the Company's Delmarva natural
gas operations including Cecil
County. "Adding the Elkton Gas platform including their
talented team of employees to our existing presence creates a
stronger consolidated operation to better support customers and the
natural gas infrastructure in the area."
The specific terms of the transaction were not publicly
disclosed. The transaction is expected to close in the first half
of 2020.
About Chesapeake Utilities Corporation
Chesapeake
Utilities Corporation is a diversified energy company engaged in
natural gas distribution and transmission; electricity generation
and distribution; propane gas distribution; and other businesses.
Information about Chesapeake Utilities Corporation's businesses is
available at www.chpk.com, through the Company's Investor Relations
App and on the Annual Report Microsite at cpkannualreport.com.
About SJI
SJI, an energy services holding company
based in Folsom, NJ, delivers
safe, reliable, affordable natural gas service to approximately
681,000 customers in New Jersey
and Maryland through its three
regulated natural gas utilities - South Jersey Gas, Elizabethtown
Gas and Elkton Gas. SJI's non-utility businesses within South
Jersey Energy Solutions promote efficiency, clean technology and
renewable energy by providing customized wholesale commodity
marketing and fuel management services; and developing, owning and
operating on-site energy production facilities. SJI Midstream
houses the company's interest in the PennEast Pipeline Project.
Visit sjindustries.com for more information about SJI and its
subsidiaries.
Please note that Chesapeake Utilities Corporation is not
affiliated with Chesapeake Energy, an oil and natural gas
exploration company headquartered in Oklahoma City, Oklahoma.
Cautionary Note Regarding Forward-Looking Statements:
Statements in this release that are not historical are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Words such as "expect," "likely," "outlook," "forecast," "would,"
"could," "should," "can," "will," "project," "intend," "plan,"
"goal," "target," "continue," "sustain," "believe," "seek,"
"estimate," "anticipate," "may," "possible," "assume," variations
of such words and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements are
not guarantees of future performance and are subject to risks,
uncertainties and assumptions that could cause actual results to
vary materially from those indicated, including the factors
described in Item 1A (Risk Factors) of our most recent Annual
Report on Form 10-K and Quarterly Report on Form 10-Q, each of
which is incorporated herein by reference, and in other documents
that we file or furnish with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated or
anticipated by such forward-looking statements. Accordingly, you
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. Except
to the extent required by law, the Company does not undertake, and
expressly disclaims, any duty or obligation to update publicly any
forward-looking statement after the date of this release, whether
as a result of new information, future events, changes in
assumptions or otherwise.
For more information,
contact:
Justin Mulcahy
Public Relations Manager
302.217.7050
jmulcahy@chpk.com
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SOURCE Chesapeake Utilities Corporation