New Mexico Gas Company to be sold to Bernhard Capital Partners for $1.25 billion

The parent company of New Mexico Gas Company, Emera Inc., announced it has agreed to sell NMGC for $1.25 billion to Bernhard Capital Partners, a services and private equity management firm. The deal also includes assumption of about $500 million in debt.

"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 more than $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 more than 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," Balfour said. "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 23 times the last 12 months' earnings and 1.42 times rate base. Estimated after-tax net proceeds of approximately $750 million will be used to repay holding company debt and support its investment opportunities in its regulated utility businesses.

"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, 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 and pursuant to the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to close in late 2025 but will not close before Sept. 30, 2025, unless otherwise authorized by the NMPRC.