New Mexico
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.”
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.
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
Emera Media
Dina Bartolacci Seely
media@emera.com
Bernhard Capital Partners Media
Ed Trissel / Erik Carlson
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
New Mexico
14 indicted in alleged Permian Basin crude‑oil theft scheme spanning New Mexico and Texas, prosecutors say
A federal grand jury in Lubbock has indicted 14 people accused of stealing crude oil in eastern New Mexico and hauling it into Texas to resell at cut‑rate prices.
Prosecutors say the scheme targeted the Permian Basin’s vast production network, the oil‑rich region spanning southeastern New Mexico and West Texas that covers more than 86,000 square miles and accounts for the majority of U.S. crude oil production.
All 14 defendants are charged with conspiracy to transport stolen property across state lines, and several also face counts of interstate transportation and receipt, possession, or sale of stolen property, according to the U.S. Attorney’s Office for the Northern District of Texas.
Indictment outlines alleged operation
Returned April 8, the indictment alleges the group stole crude oil in eastern New Mexico, some stored on U.S. government-leased land, and resold it to co‑conspirators at prices below the standard U.S. market benchmark.
Prosecutors say the conspirators transported the stolen oil into Texas for resale at a profit, knowing it was stolen.
Texas, New Mexico defendants identified by prosecutors
Texas defendants are James Darrell Reid, 65, and Randell Wayne Reid, 41, owners of Texas-based Reidco Enterprises and both of Electra – about 25 miles northwest of Wichita Falls and 115 miles from Fort Worth – along with Christopher Frederick Harris, 22, of Seminole, about 80 miles west of Midland.
The remaining 11 defendants are from Lovington, a southeastern New Mexico community of about 11,690 people, roughly 20 miles west of the Texas state line and squarely inside the Permian Basin.
They include:
- Louis George Edgett, 68;
- Brenden Floyd Strickland, 25;
- Sixto Herrera-Estebane, 43;
- Gyardo Gonzalez, 47;
- Jesus Martin Hernandez-Borja, 51;
- Diana Marquez Rojo, 45;
- Jose Luis Rojo, 49;
- Jose Mario Rivas-Mendoza, 37;
- Miguel A. Soto, 41;
- Tavares Montrail Cole, 48; and
- Danny Dale Brown Jr., 42.
Potential penalties outlined by DOJ
According to prosecutors, the defendants face up to five years in prison for conspiracy and up to 10 years per count for interstate transportation, possession, or sale of stolen property.
The investigation was conducted by the Bureau of Land Management, the FBI, the Texas Department of Public Safety’s Criminal Investigation Division, and sheriff’s offices in Lea and Eddy counties in New Mexico.
CBS News Texas will provide updates as additional information becomes available.
New Mexico
Governor establishes Energy Affordability and Grid Reliability Council – 13-member council designed to protect ratepayers, modernize the grid – Office of the Governor – Michelle Lujan Grisham
SANTA FE — Governor Michelle Lujan Grisham today signed an executive order establishing the New Mexico Energy Affordability and Grid Reliability Council to address the rising cost of electricity in a rapidly changing energy landscape.
The Council will convene state agency leaders, utility executives and experts in rural cooperative utilities, tribal energy, consumer advocacy, and energy policy and infrastructure to develop strategies for keeping energy affordable while ensuring the grid can meet the demands of a growing, modernizing New Mexico economy.
“At a time of dramatically rising energy prices, it’s imperative that we do everything we can to protect New Mexico ratepayers while ensuring abundant clean energy supply,” said Governor Lujan Grisham. “The experts I’ve appointed to the New Mexico Energy Affordability and Grid Reliability Council are well-positioned to make smart, insightful recommendations and I look forward to their findings.”
The Council will evaluate and recommend strategies across four interconnected areas:
- Ratepayer protection: Ensuring that large-load growth — including data centers and onshore manufacturing — does not disproportionately increase costs for residential, rural, tribal and small business customers.
- Grid modernization and reliability: Recommending rate designs and financing strategies that enable prudent infrastructure investment while minimizing long-term rate escalation.
- Clean energy progress: Advancing New Mexico’s net-zero goals under the Energy Transition Act by expanding zero-carbon generation and storage while maintaining affordable access.
- Permitting efficiency: Identifying opportunities to streamline and coordinate state and local permitting for electricity infrastructure — accelerating deployment of clean energy projects without compromising environmental review, tribal consultation, or regulatory safeguards.
The Council will deliver a final report — including legislative, regulatory and administrative recommendations — to the Governor and the Legislature by November 1, 2026.
The Council consists of 13 members representing state government, utilities, rural cooperatives, tribal communities and independent experts:
- Erin Taylor, acting secretary, Energy, Minerals and Natural Resources Department
- Rob Black, secretary, Economic Development Department
- Cholla Khoury, chief of staff, Public Regulation Commission
- Lynn Mostoller, executive director, Renewable Energy Transmission Authority
- Sunalei Stewart, deputy commissioner for operations, State Land Office
- Don Tarry, president and CEO, TXNM Energy (PNM)
- Kelly A. Tomblin, president and CEO, El Paso Electric
- Zoe Lees, regional vice president, regulatory policy, Xcel Energy
- Vince Martinez, CEO, New Mexico Rural Electric Cooperative Association
- Javier Bucobo, vice president of markets and regulatory affairs, Avangrid (grid infrastructure expert)
- Joseph Yar, attorney, Velarde & Yar (consumer/ratepayer advocate)
- Sandra Begay Keeto, retired, Sandia National Laboratories; member, Navajo Nation (tribal energy expert)
- Rep. Meredith Dixon, New Mexico House of Representatives, District 20 (energy policy expert)
The Council is administratively attached to the Department of Finance and Administration. Members will serve without compensation, other than per diem and mileage as permitted by law.
The executive order can be viewed here.
New Mexico
Duke Rodriguez challenges state’s universal child care in lawsuit
ALBUQUERQUE, N.M. – Republican candidate for governor Duke Rodriguez is suing Governor Michelle Lujan Grisham over her executive order that started universal free child care before a new law takes effect.
The governor enacted the program through executive order in November.
Lawmakers passed a universal child care law during the past session, but that law does not take effect until May 20.
Rodriguez says he objects to some of the rules and to how the governor started the program. The suit asks the Second Judicial District Court to prohibit further enforcement of any regulations tied to the program.
“You could understand an outgoing governor trying to do it for political capital, for expediency just to say, I’m first in the nation.” Rodriguez said.
Rodriguez says he is confident he will win and that the rules he is challenging will be struck down.
“We also now have what we call pre emptive eligibility, which means you don’t even have to prove you’re eligible and you’re covered the moment you walk in,” Rodriguez said. “All of those things individually and collectively that have been proposed and changed probably invite fraud, waste and abuse and you know it.”
The governor’s office responds
The governor’s office sent a statement saying the program was properly implemented and that the governor is confident the lawsuit will be rejected.
A spokesperson for the governor sent KOB 4 the following statement:
“This lawsuit makes clear that Mr. Rodriguez has a fundamental misunderstanding how state government works. He states that ECECD did not have the authority to undergo rulemaking regarding universal childcare. They do. He states that ECECD did not have the funding to implement the program when they did their rulemaking. They did. That is why the program was operational in December – before the 2026 Legislative session started. Perhaps more importantly, the lawsuit ignores that the legislature passed SB 241, which codified the program and its future funding into law. The governor is confident that the courts will reject his meritless claims.“
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