Emera Inc. has secured final approval from the New Mexico Public Regulation Commission (NMPRC) to complete the sale of its subsidiary, New Mexico Gas Company (NMGC), to private investment firm Bernhard Capital Partners. The regulatory clearance represents the last major step required to finalize the transaction, which was initially announced in August 2024 and is valued at approximately USD 1.25 billion.
Scott Balfour, President and Chief Executive Officer of Emera Inc., welcomed the decision, describing it as an important achievement that aligns with the company's long-term strategic objectives. He acknowledged the NMPRC for conducting a comprehensive review of the transaction and expressed appreciation for the dedication of the New Mexico Gas workforce, whose continued commitment ensured reliable service to customers throughout the review period.
Balfour also expressed confidence that Bernhard Capital Partners will continue to strengthen the utility's operations while maintaining its focus on delivering dependable natural gas services to customers, supporting employees, and contributing to communities across New Mexico.
The transaction is expected to generate after-tax net proceeds ranging from USD 650 million to USD 700 million for Emera. The company plans to use these funds to strengthen its financial position by reducing outstanding debt while also supporting investments across its regulated utility businesses. The move reflects Emera's strategy of optimizing its portfolio, improving financial flexibility, and focusing capital on core regulated operations that provide long-term, stable returns.
New Mexico Gas Company became part of Emera's portfolio in 2016 through the acquisition of TECO Energy. Since then, NMGC has remained the largest natural gas distribution utility in New Mexico, operating more than 19,300 kilometers (12,000 miles) of natural gas pipelines. The utility currently serves over 553,000 residential, commercial, and industrial customers throughout the state, making it a critical part of New Mexico's energy infrastructure.
For Bernhard Capital Partners, the acquisition provides an opportunity to expand its presence in regulated utility infrastructure while benefiting from the stable cash flows associated with natural gas distribution. The investment firm is expected to continue operating the utility with an emphasis on system reliability, customer service, and future infrastructure improvements.
With regulatory approval now complete, the transaction marks a significant milestone for both companies. Emera will gain additional capital to support future investments and balance sheet improvements, while Bernhard Capital Partners assumes ownership of one of New Mexico's most important energy utilities, positioning the company for continued operational development and long-term growth.
Impact on Product
The transaction is primarily a corporate ownership change and does not directly affect natural gas production, pipeline capacity, or distribution operations. As a result, the supply of natural gas to residential, commercial, and industrial customers is expected to remain stable. Over the longer term, Bernhard Capital Partners may invest in pipeline modernization, network expansion, and infrastructure upgrades, which could improve operational efficiency and service reliability. However, no immediate changes are expected in natural gas availability, utility operations, or downstream industrial consumption due to the ownership transition.
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