We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chesapeake Utilities' Recent Buyout to Boost Propane Business
Read MoreHide Full Article
Chesapeake Utilities Corporation (CPK - Free Report) announced that its unit, Sharp Energy, Inc. has expanded propane operation in Pennsylvania through the purchase of propane operating assets of Lehighton, PA-based R.F. Ohl Fuel Oil Inc.
The acquisition of propane assets will increase Sharp Energy’s existing propane customer base in Pennsylvania, which stands at 6,000, by another 2,500 customers. This acquisition is a strategic fit and is in line with the company’s plan to expand operations in the region.
Acquisitions Help in Expansion
Chesapeake Utilities continues to expand propane business through acquisitions. The company’s unregulated energy business, Flo-gas acquired certain operating assets of Chipola in August 2017 and Central Gas in December 2017. Both these acquisitions added a total of 1,125 propane customers to its existing base.
As a result of acquisitions and organic growth at the end of the third quarter of 2018, the company had the capacity to store nearly 7 million gallons of propane compared with 6.2 million in the year-ago period.
Another very active acquirer is Ferrellgas Partners, L.P. . This partnership firm keeps on making strategic acquisitions to expand its propane operation across the United States. In nearly 80 years of business, Ferrellgas has acquired more than 250 independent companies to expand propane operation.
Importance of Propane
Per the U.S. Energy Information Administration (“EIA”) release, nearly 5% of all U.S. households utilize propane for heating purposes, and majority of these households are in the Northeast and Midwest. EIA expects propane spending in the Northeast to increase 1% this winter from the last winter.
Chesapeake Utilities’ decision to expand its operation in the Northeast region via acquisitions seems to be a prudent one, given the expected rise in the usage of propane in the region.
Price Movement
Chesapeake Utilities’ shares have gained 12% in the past 12 months compared with its industry’s growth of 3.7%.
ONE Gas and Southwest Gas reported positive earnings surprise of 10.71% and 78.57%, respectively, in the last reported quarter.
The Zacks Consensus Estimate for 2018 earnings of ONE Gas and Southwest Gas has moved 0.9% and 1.3% upward, respectively, in the past 60 days.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Chesapeake Utilities' Recent Buyout to Boost Propane Business
Chesapeake Utilities Corporation (CPK - Free Report) announced that its unit, Sharp Energy, Inc. has expanded propane operation in Pennsylvania through the purchase of propane operating assets of Lehighton, PA-based R.F. Ohl Fuel Oil Inc.
The acquisition of propane assets will increase Sharp Energy’s existing propane customer base in Pennsylvania, which stands at 6,000, by another 2,500 customers. This acquisition is a strategic fit and is in line with the company’s plan to expand operations in the region.
Acquisitions Help in Expansion
Chesapeake Utilities continues to expand propane business through acquisitions. The company’s unregulated energy business, Flo-gas acquired certain operating assets of Chipola in August 2017 and Central Gas in December 2017. Both these acquisitions added a total of 1,125 propane customers to its existing base.
As a result of acquisitions and organic growth at the end of the third quarter of 2018, the company had the capacity to store nearly 7 million gallons of propane compared with 6.2 million in the year-ago period.
Another very active acquirer is Ferrellgas Partners, L.P. . This partnership firm keeps on making strategic acquisitions to expand its propane operation across the United States. In nearly 80 years of business, Ferrellgas has acquired more than 250 independent companies to expand propane operation.
Importance of Propane
Per the U.S. Energy Information Administration (“EIA”) release, nearly 5% of all U.S. households utilize propane for heating purposes, and majority of these households are in the Northeast and Midwest. EIA expects propane spending in the Northeast to increase 1% this winter from the last winter.
Chesapeake Utilities’ decision to expand its operation in the Northeast region via acquisitions seems to be a prudent one, given the expected rise in the usage of propane in the region.
Price Movement
Chesapeake Utilities’ shares have gained 12% in the past 12 months compared with its industry’s growth of 3.7%.
Zacks Rank & Key Picks
Chesapeake Utilities currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same industry are ONE Gas Inc. (OGS - Free Report) and Southwest Gas Corporation (SWX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ONE Gas and Southwest Gas reported positive earnings surprise of 10.71% and 78.57%, respectively, in the last reported quarter.
The Zacks Consensus Estimate for 2018 earnings of ONE Gas and Southwest Gas has moved 0.9% and 1.3% upward, respectively, in the past 60 days.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>