Emera has secured final approval from the New Mexico Public Regulation Commission (NMPRC) to complete the sale of the New Mexico Gas Company (NMGC) to Bernhard Capital Partners.
NMGC is a natural gas utility in New Mexico, US.
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The transaction, announced in August 2024, carries an aggregate value of approximately $1.25bn, including the assumption of around $500m of debt.
Completion of the deal is anticipated in August 2026.
Emera, an energy and services company based in Nova Scotia, Canada, stated that after-tax net proceeds from the divestment are expected to range between $650m and $700m. These funds will be directed towards investment opportunities across its regulated utility businesses and repaying existing debt.
Emera president and CEO Scott Balfour said: “This approval marks an important milestone for Emera and supports our long-term growth objectives.
“We appreciate the NMPRC’s thorough review and decision and thank the New Mexico Gas team for their unwavering focus on customers.
“We are confident Bernhard is committed to building on that strong foundation and supporting the continued success of New Mexico Gas for customers, employees and communities across the state.”
NMGC, headquartered in Albuquerque, serves more than 553,000 customers and manages a pipeline network exceeding 19,300km across New Mexico.
The utility operates in 27 out of the state’s 33 counties. Emera acquired NMGC in 2016 as part of its purchase of the TECO Energy group of companies.
Bernhard Capital Partners is a private equity management firm focused on services and infrastructure sectors.
NMGC president Ryan Shell said: “Bernhard’s ownership ensures we have access to the capital needed for investments in our system. Our team at New Mexico Gas Company remains committed to providing safe, reliable, affordable service to our fellow New Mexicans.”
NMGC’s history dates back to the early 20th century, beginning with the establishment of the Albuquerque Gas and Electric Company in 1917 and expanding following Southern Union’s acquisition of gas franchises in 1930.
