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Emera Announces Sale of New Mexico Gas Company to Bernhard Capital Partners

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Emera Announces Sale of New Mexico Gas Company to Bernhard Capital Partners


This news release constitutes a “designated news release” for the purposes of Emera’s prospectus supplement dated November 14, 2023, to its short form base shelf prospectus dated October 3, 2023.

HALIFAX, Nova Scotia & BATON ROUGE, La. & ALBUQUERQUE, N.M., August 05, 2024–(BUSINESS WIRE)–Emera Inc. (“Emera”) (TSX:EMA), an international energy and services company, today announced it has entered into an agreement to sell its wholly owned operating company, New Mexico Gas Company, Inc. (“NMGC”), to Bernhard Capital Partners (“BCP”), a services and infrastructure-focused private equity management firm, for an aggregate transaction value of $1.252 billion USD, including the assumption of approximately $500 million USD of debt and subject to customary closing adjustments.

“This transaction strengthens Emera’s balance sheet, supports our ambitious capital plan and reinforces our strategic decision to optimize our portfolio and reallocate capital to our highest growth markets to drive long-term value for our shareholders,” says Scott Balfour, President and CEO, Emera Inc. “New Mexico Gas is a strong regulated utility with a customer-focused team. We’re proud of the work we have done together over the past eight years to drive customer growth and enable nearly $800 million USD in strategic capital investments to expand and maintain a safe, reliable system that will serve New Mexicans for decades to come.”

Emera acquired NMGC as part of its acquisition of the TECO group of companies in 2016. Under Emera’s ownership, NMGC has grown and remains the largest natural gas utility in New Mexico, serving over 545,000 customers and safely managing more than 12,000 miles of transmission and distribution pipelines.

“As an operator of premium electric and gas utilities in high-growth jurisdictions, we have compelling opportunities ahead of us, driven by electrification, decarbonization and the need for increased resilience against climate-related challenges,” adds Balfour. “We will move forward to execute on these opportunities with a stronger balance sheet, a more focused operating model and a disciplined capital investment plan.”

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The purchase price and transaction value respectively represent approximately 23x last 12 months earnings and 1.42x rate base. Estimated after-tax net proceeds of approximately $750 million USD will be used to repay holding company debt and support its investment opportunities in its regulated utility businesses. The transaction is expected to improve the company’s CFO to debt metrics by 50 bps and reduce its proportion of holding company leverage by 200 bps.

“This investment directly aligns with Bernhard Capital’s strategy to invest in infrastructure assets and utilities that are critical to building more resilient communities,” says Jeff Jenkins, Founder and Partner at Bernhard Capital Partners. “We value the strong history of New Mexico Gas Company and are committed to retaining the invaluable institutional knowledge of its employees. The leadership team and all employees will remain in place after closing, and we anticipate creating approximately 70 new, local jobs. Our priority is ensuring the continuation of reliable, affordable natural gas service to customers and communities across the state. This agreement also reinforces our commitment to fostering economic opportunities and growth in New Mexico. Albuquerque-based Strategic Management Solutions (SMSI), another BCP portfolio company, has operated in New Mexico for 25 years and generated both positive economic growth and job opportunities across the state.”

BCP has an extensive operation footprint across the United States. It also recently announced agreements to acquire multiple leading natural gas LDCs that serve communities in the Gulf South. To date, BCP has invested in nearly 70 companies across 20 platforms, including several utility companies, that collectively employ approximately 20,000 people globally.

The transaction is subject to regulatory approval by the New Mexico Public Regulation Commission (“NMPRC”) and pursuant to the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to close in late 2025, but will not close before September 30, 2025, unless otherwise authorized by the NMPRC.

J.P. Morgan Securities LLC is acting as exclusive financial advisor to Emera in this transaction. Davis Polk & Wardwell LLP is serving as Emera’s legal advisor. Jefferies LLC is serving as the exclusive financial advisor to Bernhard Capital with Kirkland & Ellis LLP serving as their legal advisor.

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About Emera
Emera is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia with approximately $39 billion in assets and 2023 revenues of $7.6 billion. The company primarily invests in regulated electricity generation and electricity and gas transmission and distribution, with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments in Canada, the United States and the Caribbean.

About Bernhard Capital Partners
Bernhard Capital Partners is a services and infrastructure-focused private equity management firm established in 2013. Bernhard Capital Partners has deployed capital in four funds across several strategies and has more than $4 billion of gross assets under management. Bernhard Capital Partners seeks to create sustainable value by leveraging its experience in acquiring, operating, and growing services and infrastructure businesses. For more information, visit www.BernhardCapital.com.

Forward Looking Information
This news release contains forward‐looking information within the meaning of applicable securities laws, including statements concerning Bernhard Capital Partners’ acquisition of NMGC and the timing for closing. Undue reliance should not be placed on this forward-looking information, which applies only as of the date hereof. By its nature, forward‐looking information requires Emera to make assumptions and is subject to inherent risks and uncertainties. These statements reflect Emera management’s current beliefs and are based on information currently available to Emera management. There is a risk that predictions, forecasts, conclusions and projections that constitute forward‐looking information will not prove to be accurate, that Emera’s assumptions may not be correct and that actual results may differ materially from such forward‐looking information. Additional detailed information about these assumptions, risks and uncertainties is included in Emera’s securities regulatory filings, including under the heading “Business Risks and Risk Management” in Emera’s annual Management’s Discussion and Analysis, and under the heading “Principal Risks and Uncertainties” in the notes to Emera’s annual and interim financial statements, which can be found on SEDAR+ at www.sedarplus.ca.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240805118025/en/

Contacts

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Emera Media
Dina Bartolacci Seely
media@emera.com

Bernhard Capital Partners Media
Ed Trissel / Erik Carlson
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449



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New Mexico

Federal fraud trial against former New Mexico lawmaker pushed back to August

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Federal fraud trial against former New Mexico lawmaker pushed back to August


ALBUQUERQUE, N.M. (KRQE) – The federal fraud case against a former New Mexico state lawmaker is getting delayed again. Former Rep. Sheryl Williams Stapleton is accused of swindling millions from Albuquerque Public Schools, funneling the money through the district to a robotics company owned by a friend, Joseph Johnson. A judge had scheduled the trial for […]



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New Mexico

New Mexico confirms latest measles case at a local jail

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New Mexico confirms latest measles case at a local jail


The number of confirmed measles cases in New Mexico increased to six after the state’s Department of Health confirmed Wednesday a new case inside a local jail in Las Cruces.

A federal inmate being held in the Doña Ana County Detention Center is the latest person to have tested positive for measles. The New Mexico Department of Health said others may have been exposed to the highly contagious disease from this confirmed case if they visited the U.S. District Court building in Las Cruces on Feb. 24.

State heath officials are now urging anyone who was at the courthouse that day to check their vaccination status and report any measles symptoms from now until March 17 to a health care provider.

“The New Mexico Department of Health continues to urge people to get the measles, mumps and rubella (MMR) vaccination,” Dr. Chad Smelser, New Mexico’s deputy state epidemiologist, said in a statement. “Vaccine is the best tool to protect you from measles.”

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Measles spreads through the air and people who contract the virus may experience symptoms such as runny nose, fever, cough, red eyes and a distinctive blotchy rash. These symptoms can develop between one and three weeks after exposure.

All of the six confirmed measles cases in New Mexico so far are federal detainees.

The first measles case was detected in the Hidalgo County Detention Center on Feb. 25, when a detainee, whose vaccination status was unknown, tested positive for the disease by the New Mexico Department of Health’s Scientific Laboratory.

Two days later, a second federal inmate in the same jail tested positive for the virus alongside two detainees in the Luna County Detention Center and another in the Doña Ana County Detention Center.

Both the Luna County and Doña Ana detention centers are local jails that also serve as holding facilities for federal immigration enforcement.

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New Mexico health officials said they are the state’s first confirmed cases of this year, following a statewide outbreak in 2025 that sickened 100 people from mid-February to mid-September.

With two measles cases reported on each of the three local jails, Smelser said that the New Mexico Department of Health has sent vaccination teams to all three facilities.

State health officials are also “coordinating with all the facilities to assure all quarantine, isolation, testing and vaccination protocols are followed to minimize risk of measles spread.”

According to the NBC News measles tracker, more than 1,000 cases have been counted nationwide just in the first two months of this year. That’s nearly half the amount of cases confirmed in the United States in all of last year.

As 2026 already stands as one of the three worst years for measles infections in the country since 2000, another measles outbreak was confirmed this week in Texas inside the nation’s largest immigration detention facility.

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On Wednesday, an Immigration and Customs Enforcement spokesperson told NBC News that a least 14 cases of measles were confirmed inside Camp East Montana, which is located on the Fort Bliss Army base in El Paso.

The people who tested positive for measles have been “cohorted and separated from the rest of the detained population to prevent further spread,” the ICE spokesperson said.



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New Mexico

New Mexico legislation focusing on K-3 math education aims to improve stubbornly low scores

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New Mexico legislation focusing on K-3 math education aims to improve stubbornly low scores


Aaron Jawson regularly spends time reteaching the basics to his sixth grade math students.

They often have a bit of a complex around math, said Jawson, who teaches at Ortiz Middle School. They often have a lot going on at home, or a lot of stress about societal problems.

And in many cases they have been behind for years.

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The problem

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Why K-3?

Teacher preparation







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Jesus Dominguez ponders the next step in an equation during Aaron Jawson’s sixth grade math class Monday at Ortiz Middle School.

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Family involvement

Other changes







030226_GC_MathClass02rgb.jpg

Jesus Dominguez ponders the next step in an equation during Aaron Jawson’s sixth grade math class Monday at Ortiz Middle School.


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What more could be done?

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