New Mexico Gas Company seeks state regulators’ approval of $1.252B sale
ALBUQUERQUE, N.M. — New Mexico Gas Company is seeking state regulators’ approval to be sold to a private equity firm for $1.252 billion.
NMGC filed an application for approval with the New Mexico Public Regulation Commission. In August, parent company Emera announced the agreement with private equity firm Bernhard Capital Partners. The sale would include the assumption of around $500 million in debt. The deal is 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,” said Scott Balfour, the president and CEO of Emera, Inc.
Balfour touted “nearly $800 million in strategic capital investments” they have made to NMGC. Emera acquired NMGC in 2016.
As of now, NMGC serves over 545,000 customers. They also manage over 12,000 miles of transmission and distribution pipelines.
The sale wouldn’t change the name and the leadership and it wouldn’t reportedly lead to layoffs. In fact, the company expects this deal to bring on 70 new local jobs at NMGC, according to BCP. Some economists at New Mexico State University even say it could create as many as 150 jobs.
According to NMGC, the timeline is ultimately up to the PRC to determine. An officials say it will likely be “October 2025 at the earliest” before they close the sale.
MORE: New Mexico Gas Company to be sold to private equity firm for $1.252B