Emera Receives Final Regulatory Approval for New Mexico Gas Company Sale, Transaction Expected to Close in August 2026
Emera Inc. (TSX: EMA; NYSE: EMA) has secured the final regulatory approval required to move forward with the sale of its New Mexico Gas Company (NMGC) business to private infrastructure investment firm Bernhard Capital Partners, marking a significant milestone in the utility company’s strategic transformation. The approval, granted by the New Mexico Public Regulation Commission (NMPRC), clears the final regulatory hurdle for the transaction and positions the deal to close during August 2026.
The divestiture represents a key component of Emera’s long-term capital allocation strategy as the company continues to strengthen its regulated utility portfolio while creating additional financial flexibility for future investments. With the regulatory process now complete, Emera expects the transaction to proceed according to schedule, allowing both organizations to focus on their respective strategic priorities.
Final Regulatory Approval Clears Path for Transaction
The decision by the New Mexico Public Regulation Commission concludes an extensive regulatory review process that evaluated the proposed ownership transfer, the financial qualifications of the acquiring company, and the potential impact on customers, employees, and communities throughout New Mexico.
Regulatory approval is a critical requirement for ownership changes involving public utility companies, ensuring that essential energy infrastructure remains capable of delivering safe, reliable, and affordable service following a change in ownership. With the NMPRC’s approval now secured, all major conditions required to complete the sale have been satisfied.
The approval reflects months of review since the transaction was originally announced and provides certainty for all parties involved as they prepare for the final closing process.
Emera Highlights Strategic Importance of the Sale
Scott Balfour, President and Chief Executive Officer of Emera Inc., described the regulatory approval as an important achievement that aligns with the company’s broader corporate strategy and long-term growth plans.
According to Balfour, the approval supports Emera’s ongoing objective of optimizing its business portfolio while maintaining a disciplined approach to capital allocation. He also acknowledged the extensive review conducted by New Mexico regulators and expressed appreciation for the dedication demonstrated by New Mexico Gas Company employees throughout the transaction process.
Balfour emphasized that customer service remained a priority during the review period and noted his confidence that Bernhard Capital Partners will continue building upon the utility’s operational foundation after assuming ownership. He also highlighted expectations that the new owner will continue supporting customers, employees, and communities served by the utility across the state.
The comments reinforce Emera’s view that the transaction is not only financially beneficial but also structured to ensure continuity of service for New Mexico Gas customers.
Transaction Valued at Approximately $1.25 Billion
The sale carries an estimated aggregate transaction value of approximately $1.25 billion USD, making it one of the company’s most significant recent portfolio transactions.
Once finalized, Emera expects to receive after-tax net proceeds ranging between $650 million and $700 million USD. The proceeds will provide the company with additional financial resources that can be directed toward strategic investments while strengthening its balance sheet.
The company has indicated that the capital generated through the sale will primarily support investment opportunities across its regulated utility operations. These investments are expected to contribute to ongoing modernization initiatives, infrastructure improvements, and future growth opportunities within Emera’s core regulated businesses.
In addition to funding capital projects, a portion of the proceeds will be used to repay existing company debt. Reducing debt obligations can improve financial flexibility, strengthen credit metrics, and position the company for future investment opportunities while maintaining a disciplined capital structure.
Portfolio Optimization Strategy
The divestiture reflects a broader trend among North American utility companies that are actively evaluating their asset portfolios to focus on core operations and regulated businesses that offer predictable long-term returns.
By monetizing selected assets, utilities are increasingly seeking to recycle capital into higher-priority investments, including grid modernization, system reliability enhancements, renewable energy integration, and customer-focused infrastructure improvements.
For Emera, the sale of New Mexico Gas Company represents an opportunity to unlock significant capital while sharpening its strategic focus on regulated utility operations across its broader service territories.
The transaction also provides greater flexibility as utilities continue facing growing investment requirements associated with energy transition initiatives, aging infrastructure replacement, resilience improvements, and increasing customer demand.
History of New Mexico Gas Company Under Emera
New Mexico Gas Company became part of Emera’s portfolio following the company’s acquisition of the TECO Energy group of companies in 2016.
Since joining Emera, NMGC has continued operating as the largest natural gas distribution utility in New Mexico, providing essential energy services to residential, commercial, and industrial customers throughout the state.
Over the past decade, the utility has maintained and operated an extensive natural gas distribution network that spans more than 19,300 kilometers (approximately 12,000 miles) of pipeline infrastructure.
The network serves more than 553,000 customers, making New Mexico Gas one of the state’s most significant utility providers and an important component of New Mexico’s energy infrastructure.
Throughout Emera’s ownership, the company has continued investing in system reliability, safety, and operational performance while supporting the energy needs of communities across New Mexico.
Bernhard Capital Partners to Become New Owner
Following the transaction’s completion, Bernhard Capital Partners will assume ownership of New Mexico Gas Company.
Bernhard specializes in infrastructure investments and has experience managing businesses operating within regulated industries. The acquisition expands the firm’s utility portfolio while providing an opportunity to continue operating one of New Mexico’s largest energy distribution companies.
As ownership transitions, customers are expected to continue receiving natural gas service without disruption. Regulatory approvals governing the sale are designed to ensure continuity of operations and maintain service standards throughout the ownership change.
Employees are also expected to play an important role in supporting a smooth transition as the company moves into its next phase under Bernhard’s ownership.
Financial Benefits for Emera
The proceeds from the transaction strengthen Emera’s financial position by providing substantial liquidity that can be allocated toward long-term priorities.
Investment in regulated utility businesses remains central to Emera’s growth strategy, particularly as utilities across North America continue expanding infrastructure to improve system reliability and accommodate evolving energy needs.
Debt reduction also represents a significant benefit of the transaction. Lower leverage can reduce financing costs, improve balance sheet strength, and enhance the company’s capacity to pursue future investment opportunities while maintaining financial discipline.
The combination of reinvestment and debt repayment is expected to support sustainable long-term shareholder value while reinforcing Emera’s position as a regulated utility operator.
Closing Expected in August 2026
With the New Mexico Public Regulation Commission granting final approval, Emera now expects the transaction to officially close during August 2026, subject to customary closing conditions.
Completion of the sale will formally transfer ownership of New Mexico Gas Company to Bernhard Capital Partners while providing Emera with significant proceeds to support its capital investment strategy.
The transaction marks the conclusion of nearly two years since the sale was first announced in August 2024 and represents another important step in Emera’s ongoing portfolio optimization efforts. As the company redirects capital toward regulated utility investments and balance sheet improvement, the sale positions Emera to continue pursuing long-term growth while ensuring New Mexico Gas Company enters its next chapter under new ownership with regulatory approval and operational continuity.
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