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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

McCauley Springs Fire Reaches 100% Containment 

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McCauley Springs Fire Reaches 100% Containment 


The McCauley Springs Fire in the Jemez Ranger District, east of Battleship Rock, is 100% contained at 712 acres. 

The fire was reported on Wednesday, June 24, 2026. The Northern New Mexico Zone Type 3 Incident Management Team (IMT), led by Incident Commander Luke McLarty, initially managed the fire before the Southwest Area Incident Management Team 3, under Incident Commander Matt Rau, took over. From June 26 to July 4, this team handled operations, after which command returned to the Jemez Ranger District. Under a Type 4 organization, firefighters worked to cool remaining hot spots and secure firelines, reaching full containment on July 13. 

Although the fire is fully contained, visitors should remain aware that burned areas can present hazards. When visiting fire-affected areas, watch for changing conditions, hazard trees, unstable terrain, and other post-fire hazards. Suppression repair work may continue in some locations, and the public is asked to use caution around personnel and equipment and provide crews with plenty of space to work. 

A temporary closure order for the burned area remains in place through August 11, 2026. The full order and map can be found on the Santa Fe National Forest website under Alerts. Battleship Rock, Jemez Falls Campground and Group Area, the Jemez Falls Trailhead, San Diego Overlook, and the East Fork Trail from Battleship Rock to Highway 4 will remain closed until further notice for public safety.  

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A multi-disciplinary Burned Area Emergency Response (BAER) team evaluated the burned area to identify risks to human life, property, and critical resources. Over 80% of the fire was mapped as low soil burn severity, meaning most tree canopies and ground cover remain intact, reducing the risk of erosion and runoff. About 12% of the area showed moderate burn severity, with patchy ground cover loss and some water-repellent soils. Less than 1% was classified as high burn severity, where vegetation and soil were heavily impacted. The full summary can be found on the Santa Fe National Forest website.  

For Santa Fe National Forest news and updates visit our website and social media pages (Facebook and X).  

About the Forest Service: The Forest Service has brought people and communities together to answer the call of conservation for more than 100 years. Grounded in world-class science and technology — and rooted in communities — the Forest Service connects people to nature and recreation opportunities. The agency manages 193 million acres of public land, supports the nation’s forest industry and energy needs, and operates the largest and most respected wildland fire and forestry research organizations in the world. By providing assistance to state and private landowners and working with tribes and other partners, the Forest Service also helps steward an additional 900 million forested acres within the U.S. 

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USDA is an equal opportunity provider, employer and lender. 

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Firefighters mop-up by removing burning and extinguishing vegetation near containment lines.



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New Mexico

New Mexico’s multi-million dollar blunder ends up a pile of rubble

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New Mexico’s multi-million dollar blunder ends up a pile of rubble


(El Camino Real Heritage Center | KRQE)

NEW MEXICO (KRQE) – Some call the multi-million-dollar El Camino Real Heritage Center an architectural masterpiece. Others, however, call it one of New Mexico’s most expensive blunders. In 2021, former Speaker of the House Don Tripp weighed in on the project, “As far as benefit, it really didn’t have any benefit to anybody.”

Taxpayers paid more than $4,000,000 to build it, a few million dollars more to operate it and, now, a half million to tear it down.

The El Camino Real Heritage Center is a history museum dedicated to the historic ‘Royal Road of the Interior’. Established by Spanish conquistadores in 1598, the historic byway extended from Mexico City to north of Santa Fe. Armed with $4,000,000 from the state legislature and the Bureau of Land Management, consultants were hired to find the best place to build the new museum. After studying various locations, they chose a remote spot on the prairie 37 miles south of Socorro.

(El Camino Real Heritage Center | KRQE)

The experts said, ‘build halfway between Socorro and Truth or Consequences,’ and the museum will draw 100,000 visitors a year, bring in $10,000,000 to the region, and create 174 new jobs. Back in 2004, no one raised a red flag about putting a tourist attraction in an out-of-the-way location. It was only after construction was complete that officials learned the so-called experts were dead wrong. The project was doomed to fail before it even opened its doors. “Who the heck thought it was a good idea to build it where they built it?” State Rep. Gail Armstrong told KRQE News 13 last year.

The state’s newest museum opened in 2005. An estimated crowd of 2000 turned out for the dedication ceremony. Socorro Mayor Ravi Bhasker was there. “We had Bill Richardson out there cutting the ribbon, and then we had the Vice President of Spain come down here with his beautiful wife, and we had dignitaries everywhere. It was exciting,” Mayor Bhasker said.

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But the excitement was short-lived. Where the historic El Camino Real trail was in use for three centuries, the museum with its namesake lasted just eleven years. The remote location meant few visitors, meager revenue, inadequate staffing, expensive utilities, and maintenance.

In 2016, New Mexico’s Cultural Affairs Department pulled the plug on the El Camino Real Heritage Center, padlocked the doors, and permanently closed the museum. The parking lot is deserted, tourists are gone, artifacts are packed away, display cases vacant, exhibits dismantled, interpretive panels removed, and the gift shop is bare. All there is to show for millions of tax dollars is an abandoned building on the prairie.

“Eleven years is disgraceful. There was a real failure in this particular project,” the late State Senator John Arthur Smith said in a 2021 interview. We asked the retired Senate Finance Committee Chair, when the history of this project is written, what will it say? “They’re going to shake their head and (use this as) another example of government waste,” the retired Senator Smith said in 2021.

So what do you do with a $4,000,000 deserted building in the middle of nowhere?  Time and vandals have taken a toll. The museum was closed and boarded up in 2016, and then state officials abandoned the site. Because little effort was made to secure the empty building, it is no longer habitable. Copper wiring has been stolen. There is significant structural damage, mold, a rodent infestation, and no electricity or lights. Most of the HVAC, electrical, plumbing, water, and septic systems are either obsolete or inoperable.

Faced with a whopping $3.5 million repair bill, the Museum of New Mexico’s Board of Regents made the difficult decision last year to demolish the building. Board of Regent’s President, Dr. George Goldstein, calls the building, “A loss, a huge loss.”

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“What a complete waste of taxpayer dollars,” says State Rep. Gail Armstrong who’s District 49 includes the museum site.  And what did taxpayers get for their $4,000,000 investment? “Nothing. It just cost them a ton of money. Nothing,” Representative Armstrong said.

This week, a state-hired demolition crew began the task of tearing down the museum complex. Tons of concrete, steel, and glass will be hauled away. The parking lot and nearby caretaker’s house will also be ripped out. The prairie will be graded, reseeded with native plants, and returned to the Bureau of Land Management in restored, pristine condition. The demolition project is expected to take four months.

The El Camino Real museum was planned and built during the Governor Bill Richardson administration. All of the State Legislators involved in the funding of the museum project have since left government service.

Soon, the El Camino Real International Heritage Center will be just a bitter memory. All clues to the existence of a pricey government blunder will have been erased. Pay a visit to the remote spot south of Socorro later this fall, and all you will find will be desert creosote, prairie dogs, and a few rattlesnakes.

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New Mexico

It’s a Boy! Giraffe born at Hillcrest Park Zoo in Clovis

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It’s a Boy! Giraffe born at Hillcrest Park Zoo in Clovis


A baby giraffe was born at the Hillcrest Park Zoo in Clovis.

The city announced a male calf was born around 1 a.m. Thursday to Jerrica, a Rothschild giraffe who has lived at the zoo since she was born there in January 2012.

Zoo officials said Jerrica, a first-time mother, and her calf are doing well.

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Baby giraffe born at the Hillcrest Park Zoo in Clovis, New Mexico on July 9, 2026 (Credit: Hillcrest Park Zoo )

The calf will make his public debut from 10 a.m. to noon Saturday.

“This is a once-in-a-lifetime moment you won’t want to miss! Bring your family, your camera, and your excitement as we welcome the zoo’s newest (and tallest!) superstar!” said the zoo.

Because the calf is male, he will eventually be moved from Hillcrest Park Zoo to another zoo or facility, according to the city.

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The zoo plans to ask the public to help name the calf in the coming weeks.



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