Bernhard Completes Acquisition of New Mexico Gas from Emera

Bernhard Capital Partners (BCP) has completed the acquisition of New Mexico's biggest regulated natural gas utility from Emera Inc for around $1.25 billion.

New Mexico Gas Co (NMGC) "will continue operating under its existing name and management team, as well as maintain its headquarters in Albuquerque", Bernhard said in an online statement.

NMGC says it serves over 1.3 million customers at over 553,000 homes and businesses. It operates in 27 of the state's 33 counties with 12,000 miles of pipelines.

"NMGC is a well-managed utility with a talented workforce, a proven track record and an essential role in New Mexico's future", Bernhard founding and managing partner Jeff Jenkins said. "We are proud to welcome NMGC into the Bernhard portfolio and look forward to working with NMGC's management team, employees, regulators and communities to support continued investment, operational excellence and an unwavering focus on delivering safe, reliable and affordable natural gas service".

The New Mexico Public Regulation Commission approved the transaction, announced August 5, 2024, earlier this year. Intervenors had argued that BCP did not have a proven record to operate a gas utility as competently as NMGC and lacked the financial depth as Emera.

The regulator said in its decision July 30, 2026, "The joint applicants' strongest evidence establishes that the transaction will not replace NMGC's operating management with an untested set of managers. This is an important consideration as approval of the proposed transaction does not require that the upstream owner replicate every operational function of an integrated public utility holding company".

"Instead, the joint applicants established that the new ownership structure, together with the utility's retained management and governance, is sufficient to support the regulated utility", the Commission said.

On financial health concerns, the Commission said that the transaction parties made "commitments that NMGC and [BCP's] Saturn Holdco will continue to have credit-rating reviews performed by nationally recognized rating agencies, that NMGC will maintain a post-closing equity ratio of at least 50 percent until the final order in the next general rate case and that capital will be invested in NMGC if the 12-month average-equity ratio falls below 50 percent for more than two consecutive quarters".

Acknowledging the approval, Halifax, Canada-based power and gas utility Emera said it would use the $650-700 million after-tax net proceeds "to support investment opportunities including across Emera's regulated utility businesses and repaying company debt".

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