Emera Inc: New Mexico Gas Company Sale Approved

Research evidence excerpt

Emera Inc: New Mexico Gas Company Sale Approved

Global Research

30 July 2026ab

Emera Inc Equities

CanadaNew Mexico Gas Company Sale Approved

Electric Utilities

12-month rating Neutral

What Happened?

Earlier today, the New Mexico Public Regulation Commission (NMPRC) approved the 12m price target C$74.00

sale of New Mexico Gas Company (NMGC) to Bernhard Capital Partners. Management

indicated that the transaction is expected to close within the next few weeks, pending

Price (30 Jul 2026) C$75.79

the buyer's completion of financing arrangements. The sale was originally announced in

August 2024 and carries an aggregate transaction value of ~$1.25 bln. Emera disclosed RIC: EMA.TO BBG: EMA CN

that the transaction is expected to generate $650-$700 mln of after-tax net proceeds,

Trading data and key metrics

which will be redeployed into the company's regulated utility businesses and used to

52-wk range C$77.52-63.24

repay hold co debt.

Market cap. C$22.4b/US$16.0b

What's Our Take? Shares o/s 295m (COM)

Free float 100%

We view the NMPRC’s approval of the transaction as broadly in line with expectations.

Emera has been preparing for the divestiture and its earnings and rate base growth Avg. daily volume ('000) 1,175

guidance has already excluded New Mexico Gas Company. As a result, the approval does Avg. daily value (m) C$86.5

not alter the company’s growth outlook. The stock is trading at an 18% premium to our Common s/h equity (12/26E) C$13.8b

regulated utility group average P/E in 2028 and has modestly outperformed our P/BV (12/26E) 1.7x

regulated utility group since early May. While the NMGC sale removes a key overhang Net debt to EBITDA (12/26E) 6.8x

and strengthens balance sheet flexibility, we believe much of the benefit is already

EPS (UBS, diluted) (CAD)